Buffett Has Already Launched The Ordinary Investor To Follow?

Berkshire Hathaway recently bought the Van Tuyl group, the largest private car distribution group in the United States, and triggered a discussion about the future of the automotive industry. According to Bloomberg columnist Edward Niedermeyer, this time the follower may need to think more about it.

In Niedermeyer's view, the biggest problem is that the average annual sales volume of 1600-1700 vehicles in the United States has reached its peak. Although sales in the automotive industry are strong despite the slow economic recovery, this is largely dependent on the expansion of auto loans. This means that the space for further expansion of sales volume is very limited.

Another risk is whether the so-called "moat" industry, which has barriers to entry of competitors, can have advantages over analysts' expectations. Compared with other industries, automobile sales and industry protection are relatively good, but in the long run, Online retailers The rise of traditional car sales companies may eventually fight in the Red Sea.

Besides, Internet Era The arrival of information also makes information more transparent, and the relative profit of automobile sales decreases year by year. The front end profits of new cars are being replaced by other services and financing businesses. The development of vehicle financing has caused concern among relevant government departments, and regulators are cracking down on exploitative and discriminatory auto finance. Tesla's new sales model has also challenged the traditional patented car selling mode.

Of course, " Stock god "We are not unaware of these potential risks. In fact, Buffett's high-profile claim is just the first step in his car sales industry. He has been fully aware of the challenges facing the industry in the future, which are conducive to the integration within the industry. As soon as the time comes, Buffett will be able to make the most of the relevant companies that have potential for development.

In Buffett's great business, Geico automobile insurance, general motors, BYD and other companies have taken a place. As an investor with long-term strategy and bright prospects, the entry into the gasoline and vacuum industry seems to be in order. But for ordinary investors, blindly following may be difficult to achieve the desired results.