Berkshire Hathaway announced their latest investment and divestments.
A particularly interesting addition was General Motors, with Berkshire increasing its stake by 60%.
The strange thing is why not buy at the 2009 lows but now?
General Motors then were embroiled with much issues specifically, labor cost issues due to union backed labor.
In recent release, General motors labor costs have shrunk from 16 mil to 5 mil and this long term cost reduction could be the edge that prompt Berkshire to increase its stake in this.
Surprising since I always thought Ford is the better run company. I guess GM is really different now with a better profile of vehicles in consumers minds.
I run a free Singapore Dividend Stock Tracker available for everyone’s perusal. It contains Singapore’s top dividend stocks both blue chip and high yield stock that are great for high yield investing. Do follow my Dividend Stock Tracker which is updated nightly here.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- The Dangers of Income Planning with a Fixed Inflation Rate (such as 3% p.a.) - September 25, 2023
- New 6-Month Singapore T-Bill Yield in Late-September 2023 Should Stick to 3.75% (for the Singaporean Savers) - September 21, 2023
- A Concentrated, High-Quality Fixed Income Financial Independence Income Strategy Has Enough Uncertainty - September 20, 2023