Warren Buffett is popular for investing in stock markets. In 2017, he revealed that he had sold over $900 million Walmart shares. The amount was equivalent to 90% of the shares he held in the company through the Berkshire Hathaway Inc., his investment company which is worth over $480 billion. Warren Buffett and Berkshire Hathaway have been left with only $100 million in Walmart stocks.
In the middle of 2016, Warren Buffett Walmart stocks were worth $3 billion. It would be interesting to know what made Warren Buffett take this step while Walmart is one of the biggest retailers in the world. Warren Buffet reveals that he sold his shareholding in the company because he felt that retailing is one difficult business to be involved in.
The business has been facing competition from upcoming competitors such as Amazon as well as online shopping. It is no longer easy to dominate the market like they once did. In an interview with CNBC, Warren Buffett revealed that despite Walmart being one of the best in America, the business model is hard for him. He has tried retailing personally and has faced insurmountable challenges that would see him abandon the business. Warren Buffett believes the online thing that is going one is hard to understand.
Retailers who do not adapt appropriately to the changes will have difficulties retaining customers. He also thinks Amazon is taking the competition to whole different level. Many of their customers are delighted by the services in terms of delivery. Walmart is trying to go online too but despite having the capability to marshal enough resources to accomplish this goal, Warren Buffett feels he would not like to be part of this new game. He is interested in a business that is yet to be affected adversely by online shopping. In one of the Berkshire Hathaway Annual Meeting, Warren Buffett acknowledged that Amazon has taken over the retail business in a huge way such that other businesses have not determined how they will counter the impact.