General Motors (GM) has sold off as many of the cyclical companies have on global economic weakness. Berkshire Hathaway has accumulated a reasonably sized position in the company. Due to it being a smaller position it is unlikely that it was Warren Buffett, but more likely Todd Combs or Ted Weschler that was doing the buying. It will be interesting to see if this is a high conviction purchase for Berkshire Hathaway as GM is certainly a better buy at current prices.
At T&T Capital Management we are also advocates of buying GM at these levels. There is huge pent up demand for automobiles and GM has done tremendous work fixing their balance sheet and cost structure. Enjoy the article.
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