Yes, Buffett acquired an auto dealer. He still owns
shares of car manufacturer General Motors and adds a fully business from the
distribution site. The company named Van Tuyl Group and generated sales of just under USD 8 billion.
Van Tuyl Group says it is the biggest
privately owned auto dealership group in the U.S. It has 78 independently
operated dealerships and more than 100 franchises in 10 states. The company
will be renamed Berkshire Hathaway Automotive and be based in Dallas.
The deal
comes amid ongoing consolidation in the industry. Publicly traded giants, including
Florida-based AutoNation and Oregon-based Lithia Motors have been snapping up
smaller retail chains, often run by families who have been selling cars for
generations.
It also could be possible that Buffett buys the Van Tuyl Group in order to create a new channel to sell auto insurance policies.
I've also had some of my eyes on auto parts
and car dealers in the past. The main problem was for me that they have no good
diversification abroad. Most companies generate revenues in the United States
but they have shown strong growth.
Below are five dividend paying
alternatives from the auto dealership industry. Most of the industry members
pay no dividends but for nearly all, double-digit earnings growth is predicted. If you like to follow my stories, please subscribe my blog news.
5 dividend paying auto dealers are..
