The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and technology and media editor/analyst Andrew Tonner discuss topics around the investing world.
In today's edition, Brendan and Andrew discuss Berkshire Hathaway's newest investment in General Motors. Warren Buffett wasn't behind this one himself; the $200 million investment is too small for him, but this does nonetheless give GM's stock an important stamp of approval. GM's stock is trading at dirt cheap valuations, and the company has been performing well in both the U.S. and China, where it is the market-share leader. GM is still losing money in Europe, which weighs heavily on the stock price, and the U.S. government still owns 32% of GM's shares. Still, this looks like a great opportunity to buy GM for incredibly cheap, and it's certainly one reason Berkshire took a position in the automaker.
Considering GM has lost more than $15 billion in Europe since 1999, many investors may be nervous about investing in companies that are internationally focused -- but they shouldn't be. Emerging markets are giving new life to established American companies with deep pockets. As these industry titans look abroad for more sales, they aren't starting with a blank slate -- they're bringing their operational excellence to new markets and thriving. To uncover three of our favorite picks today, we invite you to read a copy of our free report: "3 American Companies Set to Dominate the World." The report won't be available forever, so click here to get your copy today!Andrew Tonner has no positions in the stocks mentioned above. Brendan Byrnes owns shares of Ford. The Motley Fool owns shares of Berkshire Hathaway and Ford. Motley Fool newsletter services recommend Berkshire Hathaway, Ford, and General Motors. 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.