Bill Baruch Steps Aside on Amer Sports and Buys Walmart

Bill Baruch is out of Amer Sports, taking the win after being long from 19. He still likes the brands and sees secular trends behind Wilson, Arc’teryx and Salomon, but the China stimulus tailwind got eaten away by tariffs and compressed margins, and the stock started breaking down even after a good earnings report. He loves the name. He just does not think this is the time to hold it. The proceeds went to Walmart, where he was underweight consumer staples and sees technical support around 100. His bigger point is the part he thinks goes unsaid: Walmart is quietly eating into Amazon’s core business, and Sam’s Club is a legitimate competitor to Costco at a better multiple. Watch the full discussion here.

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Our team at Blue Line Capital, led by founder Bill Baruch, shares their expertise and unique market perspective.
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