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Motley Fool Hidden Gems Investing

Motley Fool Money: 11.16.2012

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 16 November 2012

⏱️ 39 minutes

🧾️ Download transcript

Summary

Our analysts discuss BP's settlement, Berkshire's big buy, and some retailers' big earnings. Plus, corporate governance expert and film critic Nell Minow talks David Petraeus, Abraham Lincoln, and the future of Netflix. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Everybody needs money. That's why they call it money.

0:09.0

From full global headquarters, this is Motley Fool Money.

0:19.0

Welcome to Motley Fool Money. Thanks for being here.

0:21.0

I'm your host, Chris Hill, and joining me in studio this week from Motley Fool Inside Value, Joe Megger,

0:25.0

from Motley Fool Pro, and Motley Fool Options, Jeff Fisher, and for million-dollar portfolio,

0:29.0

Mr. Ron Gross. Good to see you guys. We have got Warren Buffett's latest stock moves.

0:34.0

We've got a business crisis that is far worse than the fiscal cliff.

0:38.0

And as always, we've got a few stocks on our radar. But as we head into the Thanksgiving holiday week,

0:43.0

we begin with retail. We saw big-box retailers like Walmart, Sears, and Target,

0:49.0

all reporting earnings, and Jeff, Target had good results. Sears in Walmart, not so much.

0:55.0

What is going on for people who are trying to read the tea leaves of the retail industry?

1:00.0

So Chris, Target is in a bit more of a sweet spot than Walmart. They tailor to or sell to middle income families

1:08.0

who are a little better off than the lower income families that Walmart caters to.

1:13.0

Target also has their stores located demographically in such a way to reach people who are a little better off.

1:19.0

And Target then is able to raise prices slightly. They increase prices on many items

1:24.0

and still they could push those prices increases through, where Walmart lives and dies by very low pricing.

1:30.0

So what you saw is basically a demographically driven decent quarter for Target,

1:35.0

and Walmart still suffering because the economy is rough still, and that really affects lower income families.

1:41.0

Meanwhile, Sears, their consumer electronics division is just shot, not doing well.

1:46.0

That's actually news to me. I didn't know that Sears even had a consumer electronics division.

1:50.0

Sears is huge. I was actually wondering, I don't know the answer to this.

1:53.0

How's Walmart doing in the food space versus the hard goods?

...

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