Legendary investor Warren Buffett has made headlines by selling his entire $850 million stake in General Motors (GM). That surprising decision, revealed in a recent filing with the Securities and Exchange Commission, has left investors wondering about the future of the automaker, which recently forecast a potential loss of $800 million in earnings before taxes due to an impending strike by auto workers this fall. While GM shares saw a slight decline of 0.3% on Wednesday, the impact of Berkshire Hathaway’s move cannot be understated.
It’s not all doom and gloom, however, as Buffett’s Midas touch was evident in his strategic acquisition of Sirius XM stock. Berkshire Hathaway bought nearly 10 million shares, representing just under 1% of Sirius’ total market value, for a total of $50 million in the third quarter. That investment paid off, with Sirius shares up nearly 6% on Wednesday.
Despite Berkshire Hathaway’s divestments, Buffett’s unwavering confidence in the US economy was further demonstrated by the company’s successful foreign investments. The company’s shrewd move to acquire stakes in Japan’s top five trading companies, worth a total of $6.7 billion by 2020, has paid off. With Japan’s stock market hitting 33-year highs this year, Berkshire Hathaway more than doubled, increasing its holdings in each company to an average of 8.5%.
Although Berkshire Hathaway’s stock has experienced commendable growth, slightly behind the impressive performance of the S&P 500, Buffett’s bold moves and strategic investments continue to captivate investors and cement his reputation as one of the most revered in the world of finance.
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