NEW YORK (TheStreet) -- No one is too surprised to learn about Warren Buffett's investments in Wells Fargo (WFC) or Coca-Cola (KO) . But General Motors (GM) ? But according to TheStreet's Jack Mohr, GM may be a different story for those following the Oracle from Omaha.
The automaker has been roiled by the continuing ignition switch scandal, which ultimately sparked a recall spree involving more than 30 million vehicles. The result has led to billions of dollars in costs and even a few trips to Capitol Hill for CEO Mary Barra.
But Mohr said on TheStreet TV that the biggest unknown cost continues to loom -- an expected fine of between $1 billion and $2 billion from the U.S. Department of Justice.
But it doesn't matter, Mohr said. Here's what must interest Buffett: General Motors has $28 billion in cash on its balance sheet. The company also generates $6 billion in annual cash flow.
GM's financial position has never been stronger, Mohr said, and with capacity utilization above 90% and growing market share, the stock looks relatively attractive. In fact, without the automaker's recall issues, shares could be as much as 50% higher from current levels.
For the most part, the risks have played out and the stock's downside is now limited, while the upside has plenty of room, Mohr said. So investors should take advantage of the recently weak price action to get long on General Motors now.