Warren Buffett and Billionaires Are Crazy About These 7 Stocks

4. General Motors (GM): Warren Buffett had $1.2 billion in GM at the end of June. Billionaires David Tepper, Larry Robbins, and George Soros also had large bets on the stock. Activist Barry Rosenstein and David Einhorn had large positions in the stock earlier this year but they sold out their holdings as the company was troubled with multiple recalls. Two years ago Einhorn explained his GM thesis as follows in his investor letter:

“In expanding on our GM thesis, we argued that the company has not been given credit for its improved competitive and financial position post-bankruptcy. At $24.75 per share, GM trades at 8x this year’s earnings of about $3 per share. GM is poised to benefit from continued recovery in the U.S. market, a significant product upgrade cycle, eventual restructuring in Europe, and continued growth in China and Brazil. We view the government stake as an opportunity, rather than an overhang.”