Buffett: Unlikely to Invest in Auto Stocks like GM or Ford

Warren Buffett, the world's leading investor and CEO of Berkshire Hathaway, unleashed a number of brilliant ideas at this year's AGM.
On the auto sector, he said bluntly that for a long time, he and Charlie (Charlie Munger, Vice Chairman of Berkshire Hathaway) felt that the auto sector was just too tough. Historically, the auto industry has been very tough indeed, and while it is not going away, it will certainly be different in five to 10 years than it is today, both in terms of the structure of the cars and the structure of the market.
As a result, Buffett believes that capital deployment and risk are bound to happen. Berkshire is unlikely to invest in the stocks of car manufacturers like GM or Ford. It prefers the auto dealership business, which owns 78 dealerships in the US. These dealers generate more than $8 billion in revenue each year, making Berkshire one of the largest dealership groups in the US.
However, Munger added that that was not true either, and Ferrari was in a special position. And while they felt that the car industry was not an attractive industry, electric cars were still about to be a big success. It brought huge costs and risks, which were not preferred by him.