We recently published a list of 10 Defensive Stocks Billionaire Ken Fisher is Betting On. In this article, we are going to take a look at where Walmart Inc. (NYSE:WMT) stands against other defensive stocks billionaire Ken Fisher is betting on.
Ken Fisher, an American billionaire investor, author, and financial analyst, founded and runs Fisher Asset Management. He is a world-renowned investment manager recognized for his contrarian approach and strong belief in capitalism. With an estimated net worth of more than $11.2 billion, he ranks among the world’s wealthiest billionaires. The son of famed investor Philip Fisher, also known as the “Father of Growth Investing”, he coupled his father’s growth philosophy with a data-driven value mindset. Long before he became a popular name in the financial industry, Fisher made waves in the 1980s with a revolutionary idea: utilizing the Price/Sales ratio as a major tool for spotting bargain firms. Fisher noted that earnings are frequently erratic, particularly over short periods. Companies may report lower earnings on account of temporary issues such as R&D spending or accounting adjustments. Sales, on the other hand, are more steady and offer a better understanding of a company’s business strength.
Anyone that follows Fisher knows that he is one of the market’s most outspoken pundits. He thinks that, while political developments might elicit strong emotions, they rarely affect the market’s long-term direction. According to Fisher, bull markets often end as a result of either unrestrained investor enthusiasm or an unforeseen economic shock with global implications.
Interestingly, his views on several subjects, notably tariffs, appear to have evolved. Fisher has previously downplayed the potential impact of President Trump’s tariffs, stating that they may not be fully enforced or be in place for as long as anticipated. He also stressed that businesses are highly adaptable to changing economic policies, which he felt may help reduce long-term harm. However, in a recent post on X, the billionaire criticized the government’s plan to impose wide tariff measures:
“What Trump unveiled Wednesday is stupid, wrong, arrogantly extreme, ignorant trade-wise and addressing a non-problem with misguided tools. Yet, as near as I can tell it will fade and fail and the fear is bigger than the problem, which from here is bullish.”
Europe to Lead the Market
Over the last two years, the United States has dominated global markets, propelled by large growth stocks in the technology and technology-related communication services sectors, which accounted for more than 40% of US market capitalization, significantly exceeding the rest of the world’s 11%. These firms have greatly increased US returns, but Europe, where such equities account for less than 10% of total market capitalization, missed this edge. Europe’s rising stock presence is primarily restricted to luxury products, which struggled in 2024 as Asian buyers cut spending. As a result, Europe underperformed significantly during the two-year period, returning only 24.1% compared to the US’s 60.3%. Now, however, Europe is taking the lead, and its leading sectors—primarily value stocks linked to economic cycles rather than long-term trends—are primed to benefit, a sentiment that Ken Fisher echoes himself:
“This should be the first year in quite some years where value beats growth. And as that happens, the US lags the non-US world, and particularly Europe, which is so heavily value laden. So that’s been my core forecast. That will remain my core forecast until I see some big change or something different that should make me change my mind. But I babble on these videos pretty much every month, so you can hear that if it ever happens this year. Otherwise, that’s my view. I think it’ll be another big year in the market with global 20% kind of returns.”
“I don’t really know for the S&P 500, but stronger overseas, which is the part that you don’t really get to feel as an American. This year, the S&P doesn’t feel strong. It’s up, as I speak, but it doesn’t feel strong, and particularly not as NASDAQ and Tech stocks are lagging the S&P. But look overseas and see how much stronger it is there because that’s where the market is.”
Our Methodology
For this article, we picked defensive companies from Fisher Asset Management’s 13F portfolio as of the end of the fourth quarter of 2024. The following firms have low beta values (<1), consistent dividend histories, and robust businesses. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A manager standing in a hypermarket, pointing out items available for wholesale.
Walmart Inc. (NYSE:WMT)
Beta Value: 0.71
Dividend Yield: 1.13%
Fisher Asset Management’s Q4 Stake: $4.4 billion
Number of Hedge Fund Holders: 116
Walmart Inc. (NYSE:WMT) is the world’s largest brick-and-mortar retailer, with over 100,000 stores. The company’s business sectors include Walmart US, Walmart International, and Sam’s Club, which provide a variety of products such as apparel, electronics, and home items.
Walmart Inc. (NYSE:WMT) recently announced a $6 billion investment plan for Mexico, which would take effect this year. This plan intends to increase the company’s footprint by building additional outlets and creating over 5,500 direct employment. In parallel, analysts at DA Davidson and Jefferies have maintained Buy ratings on Walmart Inc. (NYSE:WMT) shares, with price targets of $117 and $120, respectively. Both firms emphasize Walmart’s upcoming Investment Community Meeting, during which the company will likely reveal development initiatives and technological breakthroughs.
Walmart Inc. (NYSE:WMT) reported solid fourth-quarter earnings, with sales up 5.2% and adjusted operating income up 9.4% on a constant currency basis. E-commerce performance has also increased dramatically, with online sales accounting for 18% of total revenue, up 1,100 basis points since fiscal 2020.
Overall, WMT ranks 1st on our list of defensive stocks billionaire Ken Fisher is betting on. While we acknowledge the potential for WMT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WMT but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center