Investment company Berkshire Hathaway sold nearly half of its stake in GM during the second quarter of the 2023 calendar year. Berkshire Hathaway declined to comment on the selloff. GM stock value was down 2.26 percent for the day in trading Tuesday.
According to a report from Automotive News, which cites a quarterly filing made Monday with the U.S. Securities and Exchange Commission, Berkshire Hathaway sold 45 percent of its stake in GM during Q2 of 2023, down from roughly 40 million shares to roughly 22 million shares.
Berkshire Hathaway declined to comment on the selloff, but analysts point to a variety of potential motivating factors, including looming threats of a strike amid ongoing contract negotiations with the United Auto Workers (UAW) labor union. Earlier today, UAW president Shawn Fain issued a statement indicating UAW members would vote on strike authorization next week, with reports indicating that little progress has been made in reaching a new agreement.
The existing labor contracts are set to expire in September, while one report indicates that the UAW’s latest contract demands may result in an added $80 billion in annual labor costs. President Biden has even weighed in on the situation, calling for both sides to come to a fair agreement.
GM stock value has hovered between $30 per share and $40 per share throughout the 2023 calendar year. GM’s Q2 earnings report was highlighted by $44.7 billion in revenue, $2.6 billion in net income attributable to stockholders, and EBIT-adjusted of $3.2 billion. The results also included a $792 million charge for new commercial agreements with LG Electronics and LG Energy Solution to help cover the battery recall for the Chevy Bolt EV and Bolt EUV.
Berkshire Hathaway CEO Warren Buffet is considered loyal to the Big Three Detroit automakers, and is known for driving a Cadillac. Berkshire acquired 10 million shares of GM stock in 2012, but the stake has grown and shrunk considerably over the years.
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Comments
Panic sell off with Biden two cents added again. Maybe he can have his son get help from CHINA again.
Maybe Buffet thinks the days of overinflated trucks and suvs and R/D of evs may rain on the oems parade.
Combination of UAW demands, EV overspending, overpricing and the fact that buyers are simply tired of paying a lot to get less and less.
This stock has not done anything since Mary became CEO. Such an unbelievable franchise in full size pickups and SUVs and the market has been so amazing for those vehicles for more than a decade, but all money squandered in white elephant projects.
GM can do do well under a different management.
This is simple move before the strike. Once settled they will be back.
If you compare prices GM has done well during very challenging times of Covid and forced EV models.
We could have a Farley who can hardly keep ford prices over $10. Share.
Terrible move then, you buy low, sell high. You don’t want the stocks to recover as they will when the agreement is settled, then buy back in.
Buffet is insanely political. More than likely this is about GM’s one foot in EV’s one foot out, and buffet is threatening to pull the other half if they don’t get serious
This is about making money.
Warren makes money with money.he can afford to move his money daily and hourly to be profitable while most investors just ride it out when things like strikes hit.
Warren can be a little liberal but at the end of the day Warren and his investors come first that is just business.
You can’t get emotional or play favorites this is not like being a football fan. It is more like gambling.
” A little liberal ” ? His huge donations to Biden and Democrats contributed to Biden pulling a tyrannical EO on the day he was inaugurated shutting down the Keystone and putting thousands out of work. That insured Buffet’s BNSF RR would continue to be the only bulk transporter of Bakken Shale Crude with Unit Trains of aging tankcars of comparatively explosive Bakken Crude passing through heavily populated areas.
Thats right, hes right up there with sam bankman fried and the Zuck, smarter than both of course, but has made his fortune and consistently uses it to pull weight weight more than male profit. Hes also ancient and in the process of making sure his fortune goes where he wants it as opposed to just making it bigger
Below is GM’s global sales since 2013 – current regime took over in 2014. GM’s rapid sales decline began in 2018 coinciding with the push to end most car production and focus on SUVs and trucks. In the short term GM made solid profits, we shall see if this strategy pays of as economies of scale continues to decline. In theory, GM’s Ultium platform allows for interchangeability of parts to readily build cars/SUVs/trucks.
GM global sales YEAR
9.7M 2013
9.93M 2014
9.96M 2015
10.01M 2016
9.6M 2017
8.38M 2018
5.9M 2022 lowest since the early 1980’s when GM recorded its first annual loss since the 20’s
As a proud GM vehicle owner for much of my adult life, it is sad. They don’t even compete anymore in the car markets, just crossovers, SUVs, and pickups. They have given up and lost the entry level buyer. I quoted on here a week ago they will either go bankrupt or merge with Honda over the next decade or so.
Very easy to see why BRK culled their shares in GM. An uncompetitive company in a very competitive industry. And going against subsidized competition from China, Japan, Germany, France, and Korea they have little chance, not counting GM’s extremely poor CEO. It saddens me greatly.
Ford’s not much better. The “margin over market share” model Ford and gm are using will lead to their downfall. At least they’re woke!
They’re going on strike. Probably selling to avoid the initial downturn and then buying before the deal is made.
In a perfect world BH pulls a Durant and gain’s majority share in gm. Buffet can then kick Mary and her board of misfits to the curb.
the market is tapped out. nothing is selling anymore. ATP keeps going up tho because only those who really want to buy are buying and are overspending like mad.. my local dealers have no stock because they cant move it – 5 vehicles of each model if that. everything is build to order.
the used stock they have is near 0 and prices are stupid high, but nothing is selling 108+ days on the lot for the 2021/2022 tahoes/sub/silvs they have. just sitting. wanting 52 54k with 70k+ miles (clearly fleet vehicles!)
not sure what gm gameplan is from here on out… they have swindled all they could. they should raise 2024 msrp on the same junk more tho, just because…
Why would you buy used when a new one is not far off the price of used and you get a full warranty. The dealership gave to much on trade in that’s their fault and nothing to do with GM. Every dealer near me is selling vehicles as fast as they get them if they are not adding stupid markup or options like $4000 dollar rims.
yes because the market has been destroyed with big thanks to the manufacturers. has a lot to do with GM (and the others, gm is not unique here). pumping MSRP allows for used inflation. creating ordering delays and features/packages being randomly unavailable creates fomo and allows price gouging. Not having any OEM discounts to dealers allows artificially high prices etc etc
its like talking to a child here having to explain the obvious.
I already told you vehicles arent selling in the classic sense – they have moved to built to order model. They are not keeping stock which allows to pump up packages (why ATP keeps going up) and also not discount anything. What stock they have (5-10 per dealer) is maxed out ltz trim with nonsense bs nobody really wants (just get an escalade already poser). if you consider 108+ days (110 as of this post) for 8 out of 10 of their used vehicles on the lot to be “as fast as they get them” then i have something to sell you! the other 2 are at 44+ days new trade in forgot what the last one was at – about the same. those too will not sell. ill keep track to see when they dump those 110+ days units to auction.. they might do like chrysler and just have them become permanent lot ornaments! they are flying off the lots tho lol.
My money is on BH knowing what’s going on over the usual gaggle of penny stock f tards dropping their nuggets here. GM is crap. Always has been and always will be. Ford isn’t much better…or worse.
I put the Toyota brand in the “junk” category as well.
A lot of sheeple out there like yourself. Resale value means little if the car is a boring, soulless appliance like Toyota.
Tokyo Rose has been around a long time spewing her nonsense. A company full of turds should really have their logo on toilet paper!
I drive them out so “resale” means nothing to me.
Toyota’s new CEO is taking steps backwards from their excellent Hydrogen ICE research that yielded two reliable ICE engines running on pure Hydrogen. He is also screwing-up and has been thoroughly criticized for cancelling the V6 in their hot-selling Tacoma, instead trying to offer only a Turbo I-4 and cancelling Toyota’s excellent V8 in the Tundra and going to a twin-turbo V6 like Ford’s problematical motor.
LOL, will never be an Asian vehicle in my driveway.
I guess, Buffet didn’t buy the $86 price target. 🤣
BH should have sold it all.
For a buy-and-hold company like BH that seeks long term stock appreciation, I was surprised they bought into any of the “domestic” automakers. There hasn’t been any history of sustained stock price appreciation for the domestic OEM automakers in many years. Large holders of these companies are typically pension funds looking for a dividend.
Betchya’ that Buffet’s analysts have discovered all the resistance in the car-buying market to these foolish battery-powered EV’s and have noticed Barra’s incredibly stupid, expensive investments in battery and EV tech factories and are hedging their bets on GM stock not doing well in the future. Buffet is no fool ( except he donates a huge amount to Democrats but was rewarded by Joey cancelling the pipe;line) and his long-term success proves it.
Hard to believe Buffet owned any GM shares based on the poor stock performance led by Mary Barra. GM is now hovering around the IPO price of 2010.
Simple – Move money to better stocks.
Buffet recognizes the “all EV” mistake and wants out.
Nailed it !
It’s because EVs are trash and the UAW is going to kill American car manufacturers.
All American carmakers are not investable besides Tesla, but only if you want in on the Ponzi.