Wrong Call? Buffett Deputies Bought GM Before Plunge

Warren Buffett's Berkshire Hathaway acquired its largest stake in General Motors before the automaker slumped 16%, as the billionaire chairman hands more responsibility to deputy stock pickers. Berkshire accumulated about 8.47 million shares of GM through Feb. 3 at an average price of $24.35, according to National Association of Insurance Commissioners data compiled by Bloomberg. The automaker closed at $20.54 on Thursday in New York. Omaha, Nebraska-based Berkshire's full stake was reported in a separate regulatory filing in May that didn't disclose the purchase price or date. 

Buffett, the world's third-richest person, built a reputation for investing in stocks below intrinsic values and riding out market swings until prices rose.That strategy has helped Berkshire amass the largest holdings in companies including Coca-Cola and American Express. 
"It's probably an advantage of Berkshire's model that they don't have to" focus on short-term results, Meyer Shields, an analyst at Stifel Nicolaus & Co, said in a phone interview. "The long-term track record of equities is pretty solid. So if you get yourself in that position, where you can endure a lot more fluctuation than almost any other investment company, then you should be able to benefit." 
Buffett, 81, has been preparing Berkshire for his eventual departure, in part by hiring former hedge-fund managers Ted Weschler and Todd Combs to help oversee a portion of the firm's $89.1 billion stock portfolio. Buffett has said he makes Berkshire's larger wagers, while the back-up stock pickers are responsible for smaller bets. Each oversees $2.75 billion, Buffett said May 5 at the company's annual meeting. 
ONE QUARTER 
"Combs, Weschler and Buffett are peas in a pod," Jeff Matthews, a Berkshire shareholder and author of "Secrets in Plain Sight: Business and Investing Secrets of Warren Buffett," said in an email. "I hardly think they worry about one quarter's performance of one stock." — Bloomberg