Buffett’s buys a different General Motors $GM

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.

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