Investment company Berkshire Hathaway has sold all of its GM stock after unloading nearly half its stake in the automaker during the second quarter of the 2023 calendar year. GM stock value has dropped nearly 17 percent since the start of the year, with the automaker recently facing pressure as a result of the United Auto Workers (UAW) labor strike. Berkshire Hathaway is an American multinational conglomerate run by billionaire Warren Buffett.
Per a recent report from Reuters, which cites a regulatory filing detailing Berkshire’s U.S.-listed stock holdings, the conglomerate eliminated its holdings in General Motors as of September 30th, 2023. Berkshire’s $318.6 billion equity portfolio now includes a small investment in the company that indirectly owns the Atlanta Braves baseball team, while Berkshire also eliminated holdings in Procter & Gamble. Berkshire sold $7 billion worth of stocks and purchased $1.7 billion during Q3.
Berkshire previously sold 45 percent of its stake in GM during Q2 of 2023, down from 40 million shares to roughly 22 million shares.
GM stock value has hovered between $30 per share and $40 per share throughout the 2023 calendar year, with the automaker’s Q2 earnings report highlighted by $44.7 billion in revenue, $2.6 billion in net income attributable to stockholders, and EBIT-adjusted of $3.2 billion. GM’s Q3 earnings were highlighted by $44.1 billion in revenue, an increase of 5.4 percent, $3.1 billion in net income, a decrease of 7.3 percent, and $3.6 billion in adjusted earnings before interest and taxes, a decrease of 17 percent.
One of the biggest factors affecting GM stock value for the past six weeks was the United Auto Workers (UAW) labor strike, which began on September 15th, 2023 following the expiration of the previous labor contract. The strike affected several major GM production facilities, and was estimated to have cost the automaker hundreds of millions of dollars per week. UAW membership have yet to ratify the new agreement, and if union members end up rejecting the proposal, the union may call for additional strikes.