I sold my Best Buy (BBY) stock on July 12 during the stock market surge. After fees I only netted about 4% from my stock purchase of BBY, however, I did not own it very long and I was concerned about retail in general.Â
That 4% taken over the year equals 20-30% return, not bad. I still like Best Buy the company, but I do see retail in general doing poorly short-to-mid-term which will drag BBY as well. Also, Wal-Mart is currently taking on Best Buy and Circuit City, and Circuit City is paying the price. I do not think BBY will fall apart like Circuit City, but Wal-Mart is a behemoth. Short-term, you do not want WMT to start being a direct competitor; long run who knows what will happen, but BBY will need to adapt or it will be suffer a mortal wound as Circuit City has.