Well how's that for an about-face? It was not even two weeks ago that we were reporting on Warren Buffett's praise for General Motors' CEO Mary Barra and her handling of the ignition switch recall. That hasn't stopped Buffett's company, Berkshire Hathaway from unloading shares during the first quarter of 2014. It's trimmed its shares by 25 percent, to 30 million shares, during the first quarter of 2014.

To be fair, Automotive News reports that Buffett doesn't even own shares in the automaker, and the decision to unload was at the discretion of Berkshire Hathaway's deputy investment manager, Ted Weschler. Still, the sale of such a significant stake is a surprising move, considering Buffett's very public and publicized praise of Barra, as well as his status company's largest shareholder and one of the most respected investors on the planet.

Other institutions have abandoned GM outright, with Greenlight Capital, a New York-based hedge fund unloading the entirety of its shares in the company – 17 million shares valued at $697 million.

GM has been almost constantly troubled in 2014, recalling a record 11.2 million cars during the first four and a half months of the year, with the most recent recall, 2.7 million units, coming yesterday.

Still, there are some investors that see potential in GM. JPMorgan Chase called the company's stock "very inexpensive," with one analyst citing the "proactive nature" of the recalls. The financial powerhouse trimmed GM's forecasted earnings by $200 million, following GM's Thursday announcement, while analyst Ryan Brinkman wrote that GM will still have very strong profit margins, which are "the highest in the cycle and stronger than Ford."


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    • 1 Second Ago
  • 12 Comments
      LegacyGT
      • 1 Year Ago
      Why praise Barra while dumping 25% of Berkshire Hathaway's holdings in GM shares? The answer is right there in the post. Berkshire Hathaway still owns 30 million shares of GM! It would be silly to bash the company publicly and risk hurting the value of the remaining holdings.
      ImUrOBGYN
      • 1 Year Ago
      "Oh, yes! Love me some GM! Love me some Barra! GM is great everyone!" . . . ...Quickly sells stocks. Look, I don't care if he technically owns the stocks himself or not. That was horseshit and completely misleading to many who have faith and stocks in GM. Perhaps it wasn't a planned move (Every dollar counts, doesn't it), but you'll have a hard to convincing me otherwise.
      WHO
      • 1 Year Ago
      Warren, Warren, Warren. You should have seen the writing on the wall when the Government dumped all their stock for a massively huge loss. The Government knew the $hit was about to hit the fan and ran.
      johnb
      • 1 Year Ago
      This Eugenics monster really knows how to play the stock market doesn't he?
      Mbukukanyau
      • 1 Year Ago
      Let me guess, driving down the price so that they can take a bigger share at a lower cost?
        Big Squid
        • 1 Year Ago
        @Mbukukanyau
        That would make sense if they intended to buy it back, but I'll bet they have inside information that the news is only going to get worse. I would get out now.
      mikoprivat
      • 1 Year Ago
      this is the first sign of Alzheimer for the old man...GM is finally doing the right thing by cleaning house Mary Barra decided that she'll recall every car that has a minor scratch on it just to start fresh. This is the time to BUY not sell GM
      NY EVO X MR GUY
      • 1 Year Ago
      It is funny how Buffett spoke so highly of Barra. Then, he dumps the stock. I find that hilarious.
      • 1 Year Ago
      [blocked]