Berkshire Hathaway’s position in Wal-Mart (WMT) stock, which hit a high of 60 million shares at the end of 2014, has been slashed to 13 million shares as of Berkshire’s most recent quarterly filing.
Although he has not connected the dots explicitly, Warren Buffett’s sale seems to suggest that he believes Amazon is going to crush Wal-Mart’s moat and eat into its profits over the coming years.
The basis for my opinion is that Warren Buffett has long been obsessed with competition in the retail landscape.
Check out this passage from Alice Schroeder’s snowball on page 524 in which she discusses Warren Buffett’s first attempt at socializing Gates with his business friends:
“Bill Gates was coming to the latest meeting of the Buffett Group in Vancouver, British Columbia for the one particular session that interested him. The Buffett Group was going to review the ten most valuable companies in 1950, … Read the rest of this article!