What Does Warren Buffett See in General Motors?
General Motors' (NYSE: GM) stock is trading at just 6.3 times GM's expected 2017 earnings. That's well below the roughly 10 times earnings that we'd expect for a healthy automaker. And thanks to that modest valuation, GM's steady dividend is yielding 4.1% right now.
GM might seem like yesterday's news, a "value trap" set to be eclipsed by high-tech names. But some famed value investors, including the great Warren Buffett, think GM is worth holding. Are they seeing something that we should be looking at closely?
CEO Mary Barra has refocused GM on fundamentals. The result: Quality is up and margins are growing. Image source: General Motors.
Source: Fool.com
