It is widely acknowledged that the best way to achieve financial stability is to buy stocks of quality companies and hold them for the long term. However, even the most seasoned investors inevitably face tests amid economic uncertainty, intensifying competition, and significant market volatility.
Walmart (WMT) is a classic case. When this discount retailer was first founded in 1962, competitors dismissed it with contempt. Yet, the success of its business model far exceeded the expectations of its founder, Sam Walton. The company went public in 1970, with shares priced at $15 each, closing at $16.5 on the first day of trading.
Although holding Walmart stock for the long term may seem like an obvious choice today, the journey has not been smooth. Early discount retail pioneers such as Kmart, Sears, and Toys “R” Us once swept across the nation but ultimately went bankrupt due to their failure to adapt to shifts in consumer trends.
Today’s Walmart is vastly different from its 1962 counterpart. While adhering to its core philosophy of “low prices and quality,” the company has successfully executed multiple strategic transformations: expanding into the grocery business, advancing supply chain automation, and successfully venturing into e-commerce.
Walmart’s success was by no means inevitable. Its stock price has experienced declines of over 30% multiple times in history, shaking out numerous wavering investors, yet it has always staged strong recoveries. Shareholders who held on have reaped substantial rewards.
In the third quarter of fiscal year 2026 (ended October 31), Walmart achieved net sales of $177 billion, a year-over-year increase of 5.8%, with adjusted earnings per share of $0.62, up 7%. Global e-commerce sales grew by 27%, and market share continued to expand. U.S. same-store sales rose by 4.8%, transaction volume increased by 1.8%, and average ticket size grew by 2.7%.
Early investors have experienced firsthand the value of long-term holding. If one had purchased a share at $16.5 after the IPO and held it to the present, the investment would have grown to $786,432. Even investors who bought a decade ago and weathered the volatility have earned a 480% return, significantly outperforming the S&P 500’s 260% gain.
Admittedly, it was difficult back then to foresee Walmart’s ability to successfully navigate retail industry transformations, shifts in consumer behavior, and grow into the world’s largest retailer. However, this case vividly illustrates the transformative returns that a focus on long-term investing can potentially deliver.
