Warren Buffett's Advice on Long-Term Value Creation Led Berkshire Hathaway to Sell GM Shares Despite Stock Tripling
In a notable investment decision, Warren Buffett once advised General Motors CEO Mary Barra that she should focus on long-term value creation rather than quarterly performance. While this philosophy initially guided Berkshire Hathaway’s stake in GM—built up from 2012 to over $4 billion at its peak—the company eventually sold the majority of its shares by late 2023, including a final batch worth around $850 million during Q3 that year. Despite this exit, General Motors' stock price more than tripled in value after hitting a low point in November 2023. At Berkshire’s initial entry price of about $25 per share, the remaining shares alone would have been valued at roughly $1.85 billion by late 2026—$1 billion higher than their reported Q2 2023 value. The article highlights lessons for investors on maintaining long-term strategies and using dollar-cost averaging to build wealth through consistent investing, even during market downturns.
Tickers: $GM
Topics: Berkshire Hathaway General Motors (GM) Long-term investing Warren Buffett