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Warren Buffett Bought Autodealership Van Tuyl Group

Discussion in 'News' started by ggies07, Oct 2, 2014.

  1. ggies07

    ggies07 Active Member

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    Warren Buffett gets into auto dealers in big way


    Another article: Buffett: I bought stocks in Wednesdays big selloff

    I've read Warren's books and strategies on investing and follow his methods and even have some shares of his company, but this? Since Tesla is having so much trouble and the dealership thing is a joke anyway for EVs, not sure......wondering if he's buying into the game to push whatever product is in BYD.
     
  2. qwk

    qwk Model S P2681

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    He has been making horrible decisions lately. Time to lose some of the money he has made over the years.
     
  3. TexasEV

    TexasEV Active Member

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    This is great for countering auto dealer cartel talking points. Now when they refer to the locally-owned dealerships owned by small business people, our response can be "yeah, like Warren Buffett".
     
  4. Phil Seastrand

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    There was a CNBC discussion this morning with someone from the Dealers Association and he was practically beaming with joy at the thought of Buffett's support in fighting Tesla.
     
  5. ggies07

    ggies07 Active Member

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    And this is exactly what I don't want to happen....This is why I can't believe he bought into this area of business AND the whole idea of it. If this should happen to become a big deal, just like divesting in fossil fuels, I will divest my money from Berkshire.
     
  6. Kipernicus

    Kipernicus Model S Res#P1440

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    Won't this be his outlet for selling BYD cars in America? Maybe he'll do things differently from traditional dealerships?
     
  7. FluxCap

    FluxCap Active Member

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    People get old. He's past his prime and I would caution people to stop worshipping at the temple of Buffett much longer.
     
  8. Cosmacelf

    Cosmacelf Active Member

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    Yeah, this is probably just a way for BYD to enter the US market.
     
  9. CliffG

    CliffG Member

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    this +1
     
  10. TexasEV

    TexasEV Active Member

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    The Wall Street Journal article this morning said the dealer group he bought sells 240,000 cars per year. He's going to use it as a base for buying up lots of individual dealers or small groups. If dealers lose their "mom and pop" image (which hasn't been true for a long time, but NADA tries to perpetuate that image), it will be much harder for local politicians to justify supporting protective laws when it's protecting Warren Buffett's megacompany.
     
  11. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Active Member

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    If this were about BYD he could set up an independent company and sign a franchise deal with BYD.

    I don't think it is. I'm sure that it's as simple as seeing that there's money to be made with new car franchises, especially because the luxury car market is the growth area. New car dealers make their real money on everything except the sale, so even if laws were liberalized, a good, large chain would be able to move into outsourcing and still make money.
     
  12. paulkva

    paulkva Member

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    I'd be surprised if that's his intent. By having any association between BYD and the dealerships, wouldn't he then risk running afoul of the same dealership/manufacturer laws that Tesla is fighting?

    I realize it could be a gray area since he only has partial (10%?) ownership interest in BYD, but I imagine that won't stop the dealership groups from trying to interfere.
     

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