1 Much-Needed Stamp of Approval for GM


The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and technology and media editor/analyst Andrew Tonner discuss topics around the investing world.

In today's edition, Brendan and Andrew discuss Berkshire Hathaway's newest investment in General Motors. Warren Buffett wasn't behind this one himself; the $200 million investment is too small for him, but this does nonetheless give GM's stock an important stamp of approval. GM's stock is trading at dirt cheap valuations, and the company has been performing well in both the U.S. and China, where it is the market-share leader. GM is still losing money in Europe, which weighs heavily on the stock price, and the U.S. government still owns 32% of GM's shares. Still, this looks like a great opportunity to buy GM for incredibly cheap, and it's certainly one reason Berkshire took a position in the automaker.

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At the time thisarticle was published

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