One interesting story being played out in the American economy and the stock market is the continuing battle between Walmart and Amazon for dominance of the retail sector. Young investors are those who do not realize Walmart is the original disruptor in retail. It was blamed for driving many small, local stores out of business through its relentless focus on giving customers lower prices. Amazon has taken that concept to new levels using technology (Thedailyrecord).
Dan Ferris, editor of Extreme Value, a financial newsletter published by Stansberry Research, began recommending Wal-Mart in 2006. Subscribers who took his advice doubled their money or better in the stock. However, he closed out that recommendation in February 2015 because he believed its share price had gotten too high, and could not continue to grow at double-digit rates. A few months later, Walmart’s stock fell.
However, late last year, Ferris recommended Walmart again. He believes the market is underestimating Walmart’s potential. And it is not perceiving the reality of the changes in retail. Retail is not going online. It’s going Omni channel, with physical stores and websites feeding customers to each other. That’s why Amazon is building physical stores.
But Walmart obviously has a major advantage over Amazon. It’s already built many brick and mortar stores. 90% of Americans live within ten miles of a Walmart store. Walmart can catch up on the technology a lot easier than Amazon can build enough physical stores.
That’s the kind of realistic, no-nonsense financial research and investing advice Stansberry Research subscribers expect from the experts who write newsletters for the company. They want independent opinions free from bias, not the same old stories that the mainstream media love to repeat.
Founded in 1999 and headquartered in Baltimore, Maryland, Stansberry Research is an independent financial research and publishing company founded by Porter Stansberry. They specialize in digging up the facts and presenting them to readers to guide people who manage their own portfolios. They do not accept advertising and do not manage money. Their loyalty of the editors is to helping subscribers grow and protect their wealth. Porter Stansberry also produces a show on YouTube every week with Buck Sexton, called The Stansberry Investor Hour.