This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Stocks Warren Buffett Loves

Stocks in this article: DE PCP WBC MEG GM

While a slump in advertising spending has been challenging for much of the newspaper industry, Buffett believes that local news is immune. That's one of the biggest reasons why he's been making such a big bet on it through MEG. While this firm is financially less robust than the others on the list, its broad collection of assets in the Southeast helps to make up for it. A tight financial relationship with Berkshire should help ensure that MEG has the wherewithal it needs to weather any speed bumps along the way back to profitability.

General Motors

While General Motors (GM - Get Report) wasn't one of Berkshire's four new positions, it was a significant one in the last quarter -- the firm upped its stake in the automaker by 50%, adding another 5 million shares to its portfolio. That gives Berkshire a $341 million interest in General Motors at current price levels.

General Motors emerged from bankruptcy with little in common with its former self: its balance sheet was more flush, its cars were better built, and its reputation was restored -- with everyone except for investors, that is. Not surprisingly, a bankruptcy where shareholders get wiped out leaves a bad taste in most people's mouths. But GM has been working hard to show investors that it's back; record profitability this year certainly doesn't hurt.

Liquidity isn't a problem today for GM -- the firm currently boasts more than $40 billion in cash and investments on its balance sheet. Selling cars isn't an issue either -- a more streamlined brand portfolio has left GM with more logical sales funnels and build quality actually has consumers buying American again. Recently announced deals to give GM more control over its captive finance arm should be a big boost in the arm for sales, especially with interest rates floating near zero right now.


Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

4 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs