If you were to read the reports about Wal-Mart's (NYSE:WMT) latest quarter, you'd be excused for concluding that the world's largest retailer is on the brink of extinction. But if this is the case, then why did Warren Buffett's Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B) just double down on the company's stock?

In one of The Motley Fool's most popular articles this month, my colleague Travis Hoium concluded that Wal-Mart "has begun to lose its cache with consumers and major holes are starting to form in its business."

Travis pointed specifically to the retailer's falling domestic same-store sales and the contraction in its international operating margin. In the three months ended April 30, U.S. comparable sales dropped by 0.4%. And on a year-over-year basis, its margins from stores overseas fell by nearly 100 basis points.

With this in mind, what explains Buffett's heightened interest in the company? As Motley Fool contributor John Maxfield discusses in the video below, there are three likely explanations.

Warren Buffett just bought nearly 9 million shares of this company
Imagine a company that rents a very specific and valuable piece of machinery for $41,000... per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click HERE to discover more about this industry-leading stock... and join Buffett in his quest for a veritable landslide of profits!

John Maxfield has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.