Waldo's walking stick is Waldo's key to his travels. The magical stick was given to Waldo by Wizard Whitebeard, and can open portals to far away lands, as well as travel through time. Besides opening portals, the stick is like a Swiss Army Knife, full of gadgets - including being able to turn into an umbrella, a pogo-stick, a pool cue and many other items. In some rare instances, the stick has reacted in an animated and personified manner, showing personality and intellegence to point things out.
The stick is the reason for Odlaw's pursuit of Waldo, as he wants the walking stick for himself. Odlaw hopes that with the stick he'll be able to get inside Fort Knox and take all the gold. Odlaw would often entice the villians of distant lands with the power of the stick, in order to get them to team up with him helped him swipe it from Waldo. Waldo lost his walking stick in the final scene, "The Fairground," in Where's Waldo?, however this is before he met the Wizard (and gained the pursuit of Odlaw) so the stick was not enchanted with magical powers at this point.