Wal-Mart: Discount Store, Discounted Stock?

As GuruFocus updates the stock buys and sells of gurus, Wal-Mart (WMT), the discount retail giant, stands out as the stock with a high ValueRank (7 out of 10). Just recently, Clipper Fund's James Gipson and T. Rowe Price Equity Income Fund's Brian Rogers bought Wal-Mart.

Oakmark's legendary fund manager Bill Nygren was the first guru that bought Wal-Mart. He bought at price of $53 a year ago. Bill Ruane, the Graham-and-Doddsville superinvestor recognized by Warren Buffett, bought about 700,000 shares Wal-Mart at similar price in the fourth quarter of 2004. As the stock price drifted down, he added another 380,000 shares, bringing his total holdings to 1.1 million shares. In the last quarter, James Gipson purchased 2.8 million shares of Wal-Mart for his famed Clipper Fund, and Brian Rogers bought 4 million shares of Wal-Mart for his $19 billion T. Rowe Price Equity Income Fund.

The price of Wal-Mart did not go up, not yet. If an investor buys Wal-Mart today, he pays a lower price than what Bill Nygren and Bill Ruane had paid. If he is patient enough and holds the stock until the price appreciates (finally), he will beat these best investors on this investment.

Is Wal-Mart a good buy? It is certainly a much better buy than it was 5 years ago, when the stock was priced at $70 and a price/earnings ratio of 55. During the last 5 years Wal-Mart's earnings have doubled, but the stock has fallen to $49, giving it a P/E of 18.

This is what Bill Nygren has to say about Wal-Mart's P/E ratio: "That's the same earnings multiple as the market average, that only makes sense if you think Wal-Mart is an average company." And he doesn't. Wal-Mart is rapidly gaining market share in its grocery business, and profit margins for its Sam's Club are improving. Bill Nygren also likes Wal-Mart's share-repurchasing plan: "We expect to see an increase in share price on a decreasing share base," he says. "And obviously, the company believes that the stock at this price is an attractive investment."

Going to Wal-Mart for its "Everyday Low Prices"? Check if its stock is also low priced!

Source: http://www.gurufocus.com/

Dr. Charlie Tian, Director of Research of http://gurufocus.com, the website that tracks the stock picks of Warren Buffett, George Soros and other guru investors like Bill Nygren, Mason Hawkins, Ken Fisher, David Dreman, Martin Whitman, James Gipson, Robert Rodriguez, Ronald Muhlenkamp, Wallace Weitz, William, Ruane, Edward Lampert, Edward Owens, Richard Aster, Jr, Robert Olstein, John Keeley, Brian Rogers and Tweedy, Browne.

In The News:

What India's biggest mutual funds bought and sold in July  LivemintEquity mutual funds received net inflows of ₹8110 crore in July.This is the highest inflow in four months.
Is it time to stop investing in equity mutual fund schemes?  Economic TimesIt is difficult to predict the market but many pundits feel it clearly needs some firm signal from the govt.
Mutual fund investors keep faith in stocks despite market rout  LivemintMumbai: Investors in Indian equity mutual funds bought more last month, unfazed by the selloff that saw the nation's $1.9 trillion market log its worst July in 17 ...
Fund managers bet over Rs 8.5K crore on these 6 stocks in July; do you own any?  MoneycontrolFund managers added large-cap private banks, utilities, energy and select FMCG names.
Hot and Cold Stocks of Mutual Funds in July 2019  MoneylifeIn July 2019, IndusInd Bank and ICICI Bank were the most preferred stocks of Indian mutual funds.
MFs, FIIs bought these 16 stocks consistently in last 1yr; what should you do?  MoneycontrolThe market has tanked since the budget on July 5. Investors have lost about Rs 12 lakh crore in terms of market capitalisation on the BSE since then. The freefall ...
Mutual funds raise holdings in Indian hotels, Triveni Turbine & CUB, among others  Economic TimesMid- and small cap shares have been caught in a bear grip since January 2018 but that has not stopped domestic fund managers from increasing their holdings ...
Mutual Fund Trend: Infosys, REC and UPL among most sold stocks by MFs in July  Zee BusinessMutual Fund Report: Domestic equity mutual fund inflows continue to show resilience despite market volatility, with July inflows touching Rs 73 billion – a 9M ...
Promoters raise, cut their pledge holding in these 30 stocks; what should you do?  MoneycontrolPledging of shares by the promoter group is not new but investor sentiment has turned cautious on those companies which have a high amount of pledged ...
MFs raise holdings in Indian Hotels, Triveni Turbine & CUB, among others  Economic TimesMutual funds have increased stakes in Indian Hotels consistently for the last 6 quarters.
Value mutual funds have given good returns over long term but can underperform in short term  Economic TimesOver the years, the benefits of value investing have been espoused by several market gurus and fund managers. Discussions around this investing philosophy ...
Mutual Funds: To stay invested or exit? Check these four points first  The Financial ExpressThe BSE Sensex is trading lower compared to the 1-year-ago and 3-months-ago levels, while it is flat compared to its level 6 months ago. In the past one year, ...
Mutual fund investors showing great appetite for assuming risk: Dhirendra Kumar  Economic TimesOne would have thought that new investors who came into mutual funds will be running away. But they are getting into riskier category of funds and the scale of ...
ITI Mutual Fund mulls slew of scheme launches in next few months  MoneycontrolThe fund house which began its operations with the launch of ITI Liquid Fund and ITI Multicap Fund in April 2019 and ITI Long Term Equity Fund in July 2019 is ...
Mutual funds cannot invest in STDs of a bank that has invested in the scheme: Sebi  Economic TimesMumbai: The Securities and Exchange Board of India (Sebi) on Friday said that mutual funds will have to ensure that no funds of a scheme is parked in ...
Is it time to switch to index mutual funds?  Economic TimesBy Rishabh Parakh It is one of the hottest topics debated these days: is it time for mutual fund investors to switch to passively-managed index funds from their ...
4 Best Mutual Funds for Retirement  NasdaqFor people on the cusp of retirement, a common dilemma is to know how to time the markets. Now, a seasoned investor would always tell you that it.
Forget stock market! Gold, silver delivering better returns in 2019  Business TodayInvestors who put their hard-earned money in traditional avenues such as gold and fixed deposits (FDs) are in a better position this year as compared to those ...
'Bad times are a good time to invest! Many stocks to turn multibaggers in next 3-4 years'  MoneycontrolInvestors will have to be extremely careful about what they are investing in. Some of the stocks that have fallen will surely become multibaggers in three to four ...
MFs play safe, exposure to top 10 Nifty stocks highest in ten years  Economic TimesET Intelligence Group: It's rather lonely at the top. As vast segments of India's equity markets continue to reel under unremitting pain, mutual funds are gravitating ...
The $3.4 trillion haven where investors 'hide out for a while’  Economic TimesBy Vivien Lou Chen and Alexandra Harris As fears of a global economic slowdown deepen and stock prices swing wildly, many U.S. investors are running for ...
Mutual Fund Update: Stocks that attracted fund managers in June 2019  Dalal Street Investment JournalIf we look at the May 2019 data then financial sector was the ones that were on top of the buying done by the fund managers. Even in the month of June 2019, ...
Mid-cap mayhem: Long road to recovery  MoneycontrolMid- and small-cap stocks have gone through a free fall. To make matters worse, large-caps are now in trouble.The large-cap-based BSE Sensex has been ...
50 hand-picked mutual funds to build your portfolio  LivemintMint50, a curated basket of investment-worthy funds, is the result of an exhaustive exercise that blends in various parameters with the aim of getting you the best ...
Kunj Bansal: Pioneer fund manager debunks some investing myths  MoneycontrolWith nearly 25 years of experience in investing Kunj Bansal has been in the mutual fund industry when it was in its nascent state. Learning and working with the ...
Growth Stocks Heat Up This Frost Mutual Fund — One Type Of Growth Stock In Particular  Investor's Business DailyFrost Equity Growth Fund invests in secular, consistent and cyclical growth stocks. Here's why most of the fund's bets are on secular growers.
Pros & cons of using a discount broker for an early-stage equity investor  Economic TimesBy DK Aggarwal With the advent of technology and the quick success of online broking, discount brokers have become popular among investors, catching the ...
Investing Insights: Tech Stocks and Lower-Risk Foreign Funds  Morningstar.comOn this week's podcast, picks for upstream energy stocks, T.Rowe Price large-cap funds, and tax efficiency of different fund types.
Sundaram MF launches multicap fund  Economic TimesThe fund will open for subscription on August 16 and close on August 30.
The Mutual Fund Show: Crisil's Ranking Of The Best Schemes After June Quarter  BloombergQuintMutual fund houses managed more money in the quarter ended June as investors turned upbeat after Prime Minister Narendra Modi returned to power with an ...
Worried about a recession? Don't panic, say financial advisors, but do be prepared  CNBCIf you are worried about a possible recession on the horizon, there are some financial moves you can make to help protect yourself. Those concerns flared up on ...
How To Double Your Money Every 4 Years With Safe Dividend Stocks  ForbesMy own portfolio dedicated to this approach has earned 17% per year.
MFs flocked to IndusInd, Kotak Mahindra Bank and Infosys in July  MoneycontrolThe weight of 'defensives' in the mutual funds portfolio rose 170 basis points in the month to 28.9 percent.
Will stocks or real estate make you the most money over the next 10 years?  MarketWatchThis could be the single best investment for the next decade.
Stocks pricey, mid- & small-cap funds prefer to hold more cash  Economic TimesCash holding of mid-cap and small-cap funds has increased significantly following stretched valuations of these companies and the regulatory rejig of the fund ...
10 mutual fund houses hold bulk of Yes Bank's riskier bonds: Report  MoneycontrolIndia's financial sector continues to boil over as industry data showed that as of June 2019, 10 mutual fund companies held as much as Rs 3,294 crore worth of ...
3 High-Growth Stocks That Are Just Getting Started  Motley FoolMost stocks will never beat the long-term returns of the S&P 500. In fact, just 4% of all publicly traded companies have accounted for the net gain of the entire ...
Explained: What is mutual fund NFO?  LivemintIn an NFO, you can subscribe to the units of the new fund, which is being launched, at an offer price which is usually set as ₹10.After the NFO, an open-ended ...
The Best Investments You Can Make Right Now  NerdWalletBased on your timeline and risk tolerance, the best investments to make right now are high-yield cash management accounts, money market funds, CDs, bonds, ...
These homeowners are putting a floor under house prices  MarketWatchDon't miss these top money and investing features.
10 Best High-Yield Dividend Stocks to Buy Now  U.S. News & World ReportDividend stocks come in all shapes and sizes. But while stability and a big brand are important, many investors are more interested in looking beyond the typical ...
Weekly Wrap: Defensive Stock Picks, Streamline Your Retirement Portfolio, & Why Choose Berkshire  Morningstar.comWe recap the week on Morningstar.com and note the most popular stocks, funds, and ETFs.
How to know if you’re invested in gun stocks  Yahoo FinanceMany investors may not know they hold positions in gun companies.
Is Fidelity China Region Fund (FHKCX) a Strong Mutual Fund Pick Right Now?  Yahoo FinanceChina - Equity fund seekers should consider taking a look at Fidelity China Region Fund (FHKCX). FHKCX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), ...
Mutual funds’ exposure to this space at all-time high; should you buy?  Economic TimesMoney managers on Dalal Street continued to shower affection on private banks for the ninth successive month as their exposure hit 19.90 per cent in June, ...
Why picking the right mutual fund is key in a tough market  LivemintWhy have mutual fund (MF) returns fallen? Mutual funds primarily invest in equity (stocks) or debt (bonds). On the equity side, mid and small cap MFs have given ...
Top 10 stocks that mutual fund managers bought and sold in March 2019  Moneycontrol.comData for equity flows into mutual funds for March came as a breather after a weak February. An increase in net inflows in equity and income category led to the ...
3 Lower-Risk Foreign-Stock Funds  Morningstar.comThese funds provide foreign-stock exposure but keep a lid on risk.
MF shopping list: Top 30 stocks that fund managers bought & sold in June  MoneycontrolMutual funds increased allocation to private banks, consumer, utilities, technology, NBFCs, retail, metals and PSU bank stocks in June, an ICICIdirect report said.
What India's three largest mutual funds bought and sold in June  Economic TimesHeres what the top three asset managers bought and sold last month.
Consider investing in direct stocks only if you can monitor portfolio proactively  LivemintDirect stocks can be considered if you have the ability to do research to identify the stocks to be bought as well as to be sold.You should be revisiting your ...
Should you invest in international mutual funds?  LivemintIf you were to sort all equity mutual funds available for retail investment by their one-year performance, international funds would come on top. The best ...
Sensex's rise from 20K to 40K: 5 lessons for equity mutual fund investors  Economic TimesWe look at some critical lessons that equity fund investors learnt during the journey of Sensex reaching 40K.
What India's top three mutual funds bought and sold in March  Economic TimesIndias largest money manager held 1.5 trillion rupees in equities.
A young investor’s guide to mutual funds  Economic TimesMany young investors, who are barely a year or two old in their career, are eager to start investing in mutual funds. ETMutualFunds.com receive many queries on ...
Govt increases limit to disclose investment in stocks, mutual funds for employees  Moneycontrol.com*Service* rules say no government servant shall speculate in any stock, share or other investment.
Actively-managed large cap mutual funds poised for a comeback  Economic TimesDefying predictions of their imminent irrelevance, some actively-managed large cap mutual fund schemes have bounced back to the top of the return chart.
Here are a few mutual funds that stocked up on YES Bank in Q4FY19  Business StandardShares of YES Bank tanked 30 per cent in trade on Tuesday, after the bank reported a massive Rs 1,507 crore loss in the fourth quarter of financial year 2018-19 ...
All you need to know about liquid mutual funds  Economic TimesThe NBFC crisis has brought liquid funds back in favour as they carry lower risk than corporate FDs.
Mutual funds shooting themselves in the foot?  Economic TimesWhat if banks take a leaf out of Kotak and HDFC Mutual Funds' decision to direct investors to come another day to get their money instead of paying them on the ...
What top mutual funds bought and sold last month  LivemintMumbai: Inflows into Indian equity mutual funds in January were the smallest in two years as heightened market volatility and political uncertainty cooled ...
Index mutual funds see 60% jump in assets in a year as actively managed funds struggle  Economic TimesIndex mutual funds — a category that aims to mimic returns of benchmarks, like Nifty or Sensex — have seen their assets surge 60% over the past one year as ...
Mutual fund SIPs don't make equity investing risk-free. Here's why  Economic TimesSIPs do reduce the risk of market timing & allow investors to buy more units when their price falls.
MF portfolio doctor: Babji needs to exit direct investments in stocks, take mutual funds route  Economic TimesThe Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals.
Can mutual funds give multibagger returns like stocks?  Economic TimesStocks can be multibaggers. They can offer extraordinary returns in a very short period. Can mutual funds ever do that? This was a question thrown at Rajeev ...
Should you invest in algorithm-based quant mutual funds?  Economic TimesQuant funds work on a data-driven model that relies on a mix of parameters and algorithms to identify the right stocks at the right time. But can they beat actively ...
Flows into mutual funds revive in May as Modi win seems to spur risk demand  LivemintFlows into Indian equity mutual funds in May rebounded from the smallest in 31 months as Prime Minister Narendra Modi's comfortable electoral win spurred ...
Mutual funds or direct equity investment – which is better?  Economic TimesOne big question that often dogs investors is which investing option should they opt for: mutual fund or direct equity? Katalyst Wealth's Ekansh Mittal ends your ...
MF holdings of auto stocks at record low: Motilal Oswal study  BusinessLineMutual funds' holdings of auto sector stocks stood at a record low in April, finds a study by broking house Motilal Oswal Securities. The weightage of the auto ...
Stick to MFs if you lack knowledge on stocks  LivemintWhile equity is surely the way going forward considering your age and the financial goals, how you buy in equity is important.Direct stocks work very well if done ...
Top 25 equity mutual funds failed to deliver positive returns in June  Economic TimesNEW DELHI: Top 25 mutual fund schemes, managing retail money in excess of $1 billion (Rs 7,000 crore) each, failed to deliver positive returns in June.
Top 30 stocks that fund managers bought & sold in March; do you own any?  Moneycontrol.comData for equity flows into a mutual funds for March came as a breather after a weak February. Increase in net inflows in equity and income category led to the ...
7 stocks most favoured by mutual funds over last one year  Economic TimesAs the markets hit a speed bump, stocks favoured by mutual funds appear to be safer bets.
Investment limits Sebi prescribes for mutual funds  LivemintIn case of unrated debt instruments, a mutual fund cannot invest more than 10% of the portfolio in a single issuer and 25% in all such securities.In case of listed ...
What India's top three mutual funds bought and sold in May  LivemintInflows into Indian equity mutual funds in May rebounded from the smallest in 31 months as Prime Minister Narendra Modi's comfortable electoral win spurred ...
Active mutual funds fail to reflect index gains  Economic TimesThe Nifty, which has hit all-time highs for the second time in April, has advanced 12% in the last one year. But these gains are yet to reflect in many mutual funds' ...
Should investors with very long term horizon always pick small cap mutual funds?  Economic TimesMutual fund investors assume that their risk taking ability goes up if they have really long investment horizon.
How income from stocks and mutual funds are taxed for an individual  Moneycontrol.comCapital gains from transfer of unlisted share are considered as STCG where period of holding is less than or equal to 24 months, and LTCG when holding period ...
Best mutual funds to invest for five years  Economic TimesIf you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
Mutual funds sell several blue chips stocks, buy mid-caps in March  Business StandardDomestic money managers were seen pruning their holdings in several blue-chip stocks, including Reliance Industries (RIL) and Housing Development Finance ...
What top 5 money managers bought and sold in February  Economic TimesFebruary was the fourth consecutive month of decline in net investment into equity mutual funds.
First-time investors can look at these mutual funds for long term  Economic TimesInvestors, who were waiting on the sidelines for the uncertainty to recede, are now looking to deploy their cash. But, valuations remain steep.
Equity funds record highest ever exposure in banking stocks in March 2019  Business TodayAs per the latest data available from the SEBI, overall deployment of equity funds in bank stocks grew around 52 per cent year-on-year (y-o-y) in the month ...
ITR filing: Income tax department makes disclosing LTCG from stocks, equity mutual funds simpler  LivemintThe Finance Bill 2018 reintroduced tax on LTCG made from listed shares and equity-oriented mutual fund.You only need to disclose the total LTCG from ...
Sebi allows mutual funds in exchange traded commodity derivatives  Economic TimesNEW DELHI: The Securities and Exchange Board of India (Sebi) on Tuesday allowed mutual funds to participate in exchange-traded commodity derivatives ...
Should you invest in mid- and small-cap funds now?  LivemintWith the new government taking office with a massive majority, it has the elbow room to push through the reforms. No wonder markets are expecting the ...
I want to invest Rs 1 crore in stocks and mutual funds for 5 years. How should I invest?  Economic TimesYou may consider the following asset allocation: 40% in large-caps; 40% in large and mid-cap, or multi-caps; and remaining 20% in mid- and small-cap funds.
Why do wealth managers recommend multi cap mutual funds?  Economic TimesMany wealth managers believe multi-cap funds are a good starting point for long-term investors, specially those using SIPs for wealth creation.
Top 8 most common mutual fund investing mistakes and how to avoid them  Business StandardMutual funds, especially equity mutual funds, have played a pivotal role in helping retail investors create wealth over the last 25 years since they actually ...
The dangers of high mutual fund inflows  LivemintMutual funds have put ₹2.4 trillion into markets in the last two years.Equity mutual funds receive ₹8000 crore monthly through SIPs.
A look at mistakes committed by investors of equity mutual fund schemes  Moneycontrol.comBalwant Jain. The interest of investors has been shifting from direct equity investing to equity mutual funds over a few years. Though this is a welcome trend, ...
Here’s a better tool to judge mutual fund performance than simple 1-year, 3-year returns  Economic TimesOne invests in mutual funds to earn potentially higher returns than those in traditional investment products, and I'm sure everyone looks at the one-year, ...
What to do if your mutual fund scheme earns more return than your investment  Economic TimesAre the returns shown in your mutual fund account statement same as the returns delivered by your fund? It is quite likely that you might have earned less than ...
Allocating to passive mutual funds in one's portfolio is increasingly making sense  Economic TimesPassive investments makes sense today as increasingly active ones are unable to beat it most times.
The best, safe mutual funds to invest for 15 years  Economic TimesI am 29 years old. I want to start an SIP of Rs 20,000 in mutual funds for a period of 12 to 15 years. Please suggest me the best and safe mutual funds? My target ...
Quant-based mutual fund schemes are coming. Should you invest?  Economic TimesMany mutual fund advisors believe quant-based mutual funds are the future of the Indian mutual fund industry.
How concentrated is your mutual fund portfolio?  LivemintA concentrated portfolio can backfire badly if the fund manager's strategy goes wrong.A portfolio with few stocks can fall sharply if share prices of most stocks in ...
Best mutual funds to build Rs 1 crore for my son’s education  Economic TimesI want to build a corpus of Rs 1 crore for my son's education. He is now 3 years old. My investment horizon is 15-20 years. I have been investing in the following ...
Investment in equity MFs drops 35% to ₹1.11 lakh crore in FY19  LivemintNEW DELHI: Investors pumped in more than ₹1.11 lakh crore in equity-oriented mutual fund (MF) schemes in 2018-19, a decline of 35 per cent compared to ...
Here are 30 stocks that fund managers bought & sold in February  Moneycontrol.comEven the month of February witnessed the lowest inflow in equity mutual funds in the last 2 years. Only Rs 5122 crore of *fresh* inflows took place in equity funds.

Price Targets

Every day in any financial publication you will find the... Read More

What To Buy?

Now that you have some money burning a hole in... Read More

The Stock Trading Plan - Why You Must Have One To Trade Successfully

This is the continuing story of our two imaginary traders,... Read More

Again With the Bubbles?

A few years back ? it seems like an eternity... Read More

Market Experience of a Naïve Stock Operator

Sometime in the third quarter of 1997, someone told me... Read More

Why This Bear?

People are constantly asking me why is the stock market... Read More

How to Short Stocks? How to Make Money when Your Stocks Go Down by Shorting

The stock market can present you with a lot of... Read More

Is Your Garage Full Of Junk?

I have a 2-car garage. There are nice shelves on... Read More

A Penny for Your Stocks

According to Investopedia Inc. the penny stock market has seen... Read More

Emotional Trading

The single most expensive stock market trades are those made... Read More

Advisory News Letters

Several times each month I am solicited by various market... Read More

Inertia

One of the basic laws of physics is that a... Read More

Outsourcing

It's about time someone spoke the truth concerning outsourcing. The... Read More

Stealth Bull

If you have been watching the stock market at all... Read More

Advantages and Disadvantages of Mutual Funds

Outlined below are some of the advantages and disadvantages of... Read More

More Window Dressing

Two weeks ago I wrote about what the Securities and... Read More

Parachute Investing

Ever jumped out of an airplane? It's OK if you... Read More

Different Types of Mutual Funds

This is a guide to the different types of mutual... Read More

Risk Control

Everything you invest in has risk so you want to... Read More

Play another Day

Money management starts with protecting your capital, realizing profits and... Read More

Kick The Tires

Before you buy another car you walk around the lot,... Read More

Why Change Funds?

On November 17 I bought 7 different mutual funds and... Read More

The I Word is Coming to a Town Near You

Hello Inflation, it has been awhile, I see you on... Read More

You Don?t HAVE To Be Trading

As a novice trader, you'll often feel the need to... Read More

Do You Know What is the Single MOST Critical Mistake in Trading the Stock Market??

Well maybe that's overstating it a little, but it's certainly... Read More