Walmart Slips away from FatCat's portfolio

FatCat has great respect towards Wal-Mart (WMT). It is without doubt, capitalism at its finest. The company is very efficiently managed. The inventory is always moving. The cash flow is good. The cost on wage is reduced to absolute minimum. It market its self as lowest price and make the profit on the good cash turnover.

However, time has changed. If you compare the stock performance of Wal-mart (WMT) against Costco (COST), BJ (BJ) and Target (TGT) you will notice that Wal-mart (WMT) has been slipping away for at least a year.

The problem? Hubris management thinks they can get away with anything and placed their own ego at top of the priority list.

1. Business plan: Wal-Mart try to promote itself in "fashion" is only the result the management realize the success of Target (TGT). The real problem is Wal-Mart's rapid expansion into China and Europe without proper market research.
2. Employee relations: Wal-Mart's ongoing trouble with union and never ending law suit and countless scandal in the employee relations area is an other giant hairball in FatCat's stomach. The cost of legal battle is only the tip of iceberg how much of poor employee relations has eaten away shareholder's profit. The raising minimu wage and walmart's new gimmick of flexible employee scheduling will undoubtedly make things worse.
3. Customer Satisfaction: if you shop atWal-Mart (WMT) and Target (TGT) and take a look at face of the customers, you will see the customers at Target (TGT) is a lot happier. You can see the same by compare SAM's club against BJ (BJ) and Costco (COST) on the whole sale stores.
   

The conclusion, FatCat drops Wal-Mart from her portfolio.