Investor Beat: The Federal Government Knocks on GM's Door

The top business stories from Wednesday's market, for today's Foolish investor.

Mar 12, 2014 at 7:26PM

Last month, General Motors recalled 1.6 million cars over a problem with ignition switches that suddenly turned off and cut power. Now federal prosecutors are investigating whether GM is criminally responsible for not properly disclosing the problem, which first came to light 10 years ago. U.S. subcommittees in the House and Senate are currently planning hearings.

On Wednesday's Investor Beat, host Chris Hill and Motley Fool analysts Jason Moser and Bryan White discuss just how big a deal this may be for GM. Jason's opinion is that this primarily calls previous leadership into question, setting a low bar for current CEO Mary Barra to outshine, depending on her and her team's handling of this. The guys also note that even large recalls can be somewhat frequent, and Bryan tells investors why the stock isn't taking much of a hit as a result. The guys also discuss whether they like the stock and the industry today.

Then the guys look at five stocks making big moves on the market today. Diamond Foods is hitting a two-year high after second-quarter profits came in higher than expected, with the company also maintaining its full-year guidance. Last Friday, rose 88% on its first day of trading, with shares only pulling back slightly since then. Fannie Mae and Freddie Mac are falling again today after the U.S. Senate Banking Committee announced plans to overhaul the mortgage market. And shares of apparel retailer Express are dropping after the company missed on fourth-quarter profits. Traffic to the company's stores was down, and the company also lowered guidance.

And finally, Bryan and Jason each pick a stock they'll be watching closely this week. Bryan looks at Williams-Sonoma, which may have an advantage over other retailers in that it sells nearly half of its merchandise directly to consumers, something that may have helped the company weather this rough patch in retail history better than many of the other retailers. Meanwhile, Jason will be watching the continued bloodbath that is Aeropostale, and tells investors that he's curious as to whether the company will find a bottom here, or whether it will just keep falling.

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Bryan White, Chris Hill, and Jason Moser have no position in any stocks mentioned. The Motley Fool recommends General Motors and Williams-Sonoma. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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