Buffett’s Shrinking Wal-Mart Stake Signals Amazon Holiday Threat
- Berkshire has cut holding for three straight quarters
- Tough to ‘Out-Bezos’ Amazon, Buffett has told shareholders
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When Berkshire Hathaway Inc. Vice Chairman Charles Munger lamented the mistakes made in the company’s first 50 years under Warren Buffett, he cited the failure to buy Wal-Mart Stores Inc. stock early enough in the retailer’s history. Judging by recent events, Buffett doesn’t think Wal-Mart is such a great idea for his company’s next half-century.
Berkshire said last month that it cut its holding in the Bentonville, Arkansas-based retailer to 13 million shares as of Sept. 30, marking the third-straight quarter that Buffett’s company lowered its stake. Online shopping has shifted the balance of power among retailers, a trend that’s become more evident this holiday season, and Wal-Mart stock has trailed Amazon.com Inc. in recent years.