5 Best Stocks to Buy According to Ed Bosek’s BeaconLight Capital

3. General Motors Company (NYSE:GM)

BeaconLight Capital’s Stake Value: $14.3 million

Percentage of BeaconLight Capital’s 13F Portfolio: 6.67%

Number of Hedge Fund Holders: 75

General Motors Company (NYSE:GM) is a renowned American car manufacturer that has been in business since 1908. The firm manufactures and sells a variety of vehicles such as luxury vehicles and pickup trucks. It is headquartered in Detroit, Michigan.

Mr. Bosek’s hedge fund held a $14.3 million stake in General Motors Company (NYSE:GM) by the end of Q2 2022. This came through 453,375 shares. Insider Monkey’s June quarter of 2022 survey of 895 hedge funds saw 75 as having held a stake in the firm.

General Motors Company (NYSE:GM) is quite optimistic about its Cruise autonomous driving platform. The company is aiming at $1 billion in revenue from the division by 2025 end, and the platform was the first to secure a permit to provide autonomous rides for profit in California in June 2022. The company also pays a 9 cent dividend for a 1% yield.

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

Chartwell Investment Partners mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“The three worst-performing stocks in the Dividend Equity accounts includes General Motors (NYSE:GM, 2.4%), down 27.4%. GM posted solid first-quarter earnings, but, supply issues continue to be a headwind and the market appears to be “pricing-in” at least a mild recession. The question seems to be: by the time the supply constraints are resolved, will we be in a much-worse economic scenario that will “hit” the demand side?

After a couple quarters of higher-than-average trading, Q2 was extremely light in both the Growth & Balanced and Dividend Equity accounts (see below). After trimming GM earlier in the year at much higher price levels, we added back to the position. Now trading at $32 per share, GM’s P/E multiple on 2022 earnings estimates is below 5 times its annual earnings per share, which we think is very attractive and is already pricing-in at least a mild recession.”