Why Best Buy Can't Survive

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The following video is part of our "Motley Fool Conversations" series, in which consumer-goods editor/analyst Austin Smith discusses topics around the investing world. In today's edition, Austin discusses one of the biggest reasons Best Buy can't survive in its current form: a dated business model. Best Buy has historically sold you low-margin items like TVs and stereos as a segue to high-margin items like cables and accessories. This won't work in the modern age of retail. Overlay big red flags from management, and this is a business headed for the garbage heap without a fundamental business-model shift.

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At the time this article was published Austin Smithhas no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Amazon.com, Best Buy, and RadioShack.Motley Fool newsletter services recommendAmazon.com and Apple. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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