via stockcharts.com Disclosure: We own WMT
WalMart ($WMT) Margin of Safety per Share Growing Again
This wealth creation chart illustrates why Wal-Mart (WMT) stock has largely underperformed the S&P500 index in the past 5 years - until recently. Despite the economic boom we had from 2002 to 2006, WMT failed to take advantage of the good economy, and its economic margin (EM) has steadily declined (red
International Growth Highlights Wal-Mart’s 2Q
We own WalMart (WMT) because it adopted value-based management a few years back. It made return on invested capital its overarching objective. The result was a change in strategy. Instead of driving sales growth by investing vast amounts in new stores in already saturated markets, WMT cut back on domestic capital spending and drove US productivity.
One of our investment themes for the last decade was the steadily growing influence of the Asian consumer. Back in the early 1990s when I managed a portfolio of stocks of companies based in Hong Kong mainly, the idea then was to take advantage of the emerging Chinese consumer. Unfortunately, many, many US companies tried to get into
