a) Go to www.bigcharts.com.
b) In the symbol box at the very top……put in: WMT.
c) Next to the symbol box….change the timeline from 1 year to All Data, (the last choice in that dropdown window).
d) Print out this chart on a piece of paper.
e) Go to www.walmartstores.com.
f) Click on the Investors sub-tab.
g) On the left hand margin you’ll see a hyperlink to Annual Reports.
h) Go to the 1968 Annual Report.
i) Look up the Revenues and Net Income, (after taxes), for 1968.
j) Create an Excel® document for Revenues and Net Income….line by line for 1968 thru 1995.
k) For each year over year period, determine the growth in Sales and Earnings on a percentage basis.
l) You’ll find that, on average, both Sales and Earnings were growing at a clip of 40%.
m) While you’re at it……read each of Sam Walton’s opening letters to shareholders on each of these Annual Reports. If you were reading those letters back then, the story was unfolding right in front of you.
n) I believe that adjusted for splits….Walmart’s price back in 1975 was nine cents. At a high price of approximately $70 share in 1999/2000 that’s a 77,700% increase.
o) You could have “found” this story anytime during the 80’s and still done quite well.
p) If you bought in 2000….you’re a looser. You had to have bought much earlier when the story was there but it wasn’t being hyped.
q) Microsoft…start with ’85. Home Depot….start with ’81. ADP….start with ’81. XTO…start with ’96.
r) Sales and Net Earnings need to be growing.
s) Peter Lynch books……Learn To Earn and One Up On Wall Street.
Just one way to make money with limited means.
It’s a global market now….Plenty of stories out there….gotta find ‘em.
-Mike
BTW…Angelo Mozillo and his Countrywide…about a 25,000% increase until it’s crash and burn.