Warren Buffett’s Berkshire Hathaway has sold $900 million of Walmart stock recently and invested billions of dollars in airlines.
In 2016, Buffett has cut holding of Walmart while selling the remaining 70% of equity after the discussion which was caused by the retailer announced acquisition of e-business company Jet.com. Buffett acknowledged that traditional brick-and-mortar retailers were struggling in the face of competition from the e-commerce giant.
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Amazon's market value is now $356 billion, compared with Walmart's $298 billion.
Buffett's been paring his stake in Walmart since. He first bought shares in Walmart in 2005. Since the end of 2014, Walmart shares have fallen 21% compared with a 119% jump in Amazon.
While Walmart has since invested billions in e-commerce, it holds a tiny share of the market compared with Amazon.
Walmart's online sales were $13.7 billion in 2015, compared to Amazon's $107 billion. Walmart is still ahead in overall sales with $482 billion, four times as big as Amazon's revenue.
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"Retailing is like shooting at a moving target," Buffett said. " Turning around a retailer that has been slipping for a long time would be very difficult. Can you think of an example of a retailer that was successfully turned around?"
At the same time, the Omaha prophet to start with the stock of the major Airlines, including American Airlines, Delta and United Continental. The three companies’ stock rose significantly after that.
The investment obviously marked the change of Buffett's thoughts. Because he has made a dire prediction in the Berkshire Hathaway Annual Shareholder Meeting in 2013, “In the past 100 years, investors put money on the airlines and aircraft manufacturers, which comes out badly. It’s a dangerous area for investors.”
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