Berkshire Hathaway is having its annual frenzy. Consider some problems for General Motors which is a large component part of Berkshire Hathaway’s portfolio.
When it comes down to it I believe Warren Buffett has a behavioural bias and tends to anchor on Big American stocks. GM which is really just finished up the restructuring already is having massive recall issues. the olde school big auto arrogance is back. GM will most likely lose share to foreign more nimble manufacturers. No one has a firm grip on the US market. expect inroads from Hyundai and Volkswagen among others. Global vehicle demand is very uncertain and subject to risks which Warren Buffett is not used to seeing. Automotive stocks sell off when macro concerns boil over. at any given point in time the question will be why are we holding this one.
George Gutowski writes from a caveat emptor perspective.