1 Reason I Think Walmart Stock Is a Warren Buffett-Worthy Investment in 2025

Core Insights - Warren Buffett underestimated Walmart's potential in the e-commerce era, despite his previous praise for the company [1][2][6] - Walmart has shown significant growth in e-commerce sales, with a year-over-year increase of 25% in the second quarter of fiscal 2025 [3][10] - The company has outperformed Amazon since 2019, indicating a strong recovery and adaptation to the e-commerce landscape [3] Company History - Buffett held Walmart stock from 2005 to 2018, during which it was one of Berkshire Hathaway's largest holdings [2] - He began selling Walmart shares in 2015, expressing concerns about the retail sector's competition with Amazon [2] Current Performance - Walmart remains the largest retailer globally, leveraging its 4,600 domestic stores as distribution hubs, which enhances its competitive edge against Amazon [10] - The company reported a 50% increase in store deliveries year-over-year in the second quarter, with a third of deliveries completed in under three hours [10] Financial Strategy - Walmart has consistently raised its dividend for 52 years, demonstrating a strong commitment to shareholder value [11] - The company is absorbing tariff impacts, allowing it to maintain competitive pricing and value for customers [11] Investment Perspective - Buffett's investment strategy focuses on companies with excellent management and significant roles in the economy, which aligns with Walmart's market position [7][12] - Walmart's essential products and discount pricing strategy position it well to gain market share during economic downturns [12]