5 Best Auto Stocks to Invest In

1. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 75

General Motors Company (NYSE:GM) is one of the oldest American car companies which was set up in 1908. The firm makes and sells trucks, cars, crossovers, and other auto parts all over the world including North America, Asia, and Africa.

As counterintuitive as it sounds, General Motors Company (NYSE:GM) might be one company that has benefitted from fears of a recession that have plagued investors’ minds throughout the course of this year. Its automotive enterprise value estimated at $48 billion is in the ballpark of its market capitalization, courtesy of the large share price drops due to recessionary fears that were not reflected on the company’s balance sheet. The company is also a first mover in the robotaxi market which is estimated to grow at a CAGR of 137% by 2030. General Motors Company (NYSE:GM) also pays a 9 cent dividend for a 0.92% yield.

75 of the 895 hedge funds polled by Insider Monkey for this year’s second quarter had invested in General Motors Company (NYSE:GM).

General Motors Company (NYSE:GM)’s largest investor is Warren Buffett’s Berkshire Hathaway which owns 52 million shares that are worth $1.6 billion.

Diamond Hill Capital mentioned the company in its Q1 2022 investor letter. Here is what the fund said:

“General Motors—and the auto industry in general—continues to face headwinds related to supply chain disruptions and raw material cost inflation. In addition, uncertainty surrounding global energy markets due to inflation and the conflict in Ukraine has created a greater economic burden on consumers, which tends to slow automotive sales.”

Disclosure: None. You can also take a look at Top Ten Semiconductor ETFs to Buy in 2022 and 10 Cybersecurity Stocks to Buy as US-China Tensions Mount.

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