Bill Gates Stock Portfolio: Latest 2024 Update

8. Walmart Inc. (NYSE:WMT)

Bill & Melinda Gates Foundation’s Investment Stake: $734 million

Number of Hedge Fund Investors In Q3 2024: 88

Walmart Inc. (NYSE:WMT) is the largest brick-and-mortar retailer in the world. The firm enjoys an enviable moat in its industry as is evident through its 10,000+ locations worldwide and a fortress balance sheet with total assets of $254 billion. As a mega-retailer, Walmart Inc. (NYSE:WMT)’s hypothesis depends on the product volumes that it shifts since they help the firm maintain robust margins in an industry notorious for its low margins. The firm also has to compete with eCommerce players like Amazon in an economy dominated by the Internet. On this front, Walmart Inc. (NYSE:WMT)’s Marketplace and its advertising business are two key fronts through which it is competing. Consequently, along with volumes and margins, these two factors are additional facets of the hypothesis. Walmart Inc. (NYSE:WMT) is also using its massive store footprint to drive its online business by introducing services such as those that allow customers to order online and avail services in physical locations.

Walmart Inc. (NYSE:WMT)’s management commented on its eCommerce business during the Q3 2024 earnings call. Here is what they said:

“As our business model evolves, it’s encouraging to see our margins improve from a diverse set of offerings. Global eCommerce losses continue to narrow in Q3, most notably in Walmart U.S. While improved business mix helped, we’re seeing good progress in core eCommerce margins. There are a few key factors driving this improvement, delivery densification, increased penetration of paid expedited delivery orders and the automation of our supply chain.”