[car fanatics]

Source
Photo credit: GM
May 15, 2012
By: CF Staff

OMAHA, Neb. (AP) — Warren Buffett's company is apparently bullish on the U.S. auto industry.

Berkshire Hathaway Inc. took a new 10-million share stake in General Motors Co. in the first quarter. The investment comes as the Detroit automaker continues to rebound from bankruptcy three years ago. Fueled by U.S. vehicle sales, it posted first-quarter net income of $1 billion.

Buffett drives a GM-made Cadillac DTS sedan, so the investment could be a further sign of his preference among U.S. automakers. Berkshire is not invested in Ford Motor Co. or Chrysler, which is majority owned by Fiat SpA.

But the purchase of the GM stake, worth about $214 million as of Tuesday, could also have been made by one of Berkshire's other investment managers. Berkshire's only other known auto investment is its roughly 10 percent stake in Chinese electric car maker BYD.

[G8mike]

Now is probably a good time to buy in. Thanks to the dimwits in Europe, the market is tanking, but both GM and Ford are making loads of money and the stocks are due for an uptick. This is a modest investment for them, but may be a good signal to the overall market.

[RougeRiver]

Lately, I have reconfigured my portfolio to stocks that pay decent dividends. I figure I can ride out the market troughs, collect dividends and buy more of the better picks on the low side.

One also must ask logical questions. They sell Coke all over the world. Coke pays about 3.5% in dividends. Is some anxiety over Europe really going to impact the sales of Coke products or the revenue that lets them pay a dividend?

IOW, I figure 3.5% is a lot better than the whopping 0.35% banks pay.

Another trick is to dump dog stocks on the low side and reinvest in better prospects. The capital loss can offset gains.

Right now, I am holding my Ford and thinking of expanding my position.

I take a ten year view on stocks. Short term plays are out of my league.

[REVolution]

I used to do short term, but it required a lot of sitting and watching. I did it when I first got into stocks a couple years ago. I learned enough but my dad taught me a lot about making covered calls and stuff. I don't think I'm ready to get to the big leagues like he does though. I tend to watch trends but sometimes, it just goes over my head.

[ncguy]

Rev - what's your Dads thoughts on the Facebook IPO? I'm coming and going here a lot due to being so busy so send me a msg on FB if you don't mind, any input into this would be greatly appreciated :ifyousayso:

I've set a substantial amount aside for this....