NEW YORK, N.Y. – Fresh off buying the nation’s fourth-largest chain of car dealers, billionaire investor Warren Buffett says he expects to buy more dealerships even as a robust auto market makes showrooms more expensive.
Sitting on a panel at the NADA/J.D. Power Automotive Forum Tuesday, Buffett said he doesn’t worry about overpaying for a dealer. It’s a business where you can estimate within 5 per cent to 10 per cent the price you’re going to pay, he said.
Buffett’s Berkshire Hathaway acquired the Van Tuyl Group this month.
Both Buffett and Larry Van Tuyl, who now runs Berkshire’s automotive group, said they don’t view Tesla’s direct-to-consumer distribution model as a threat because of the electric car maker’s small sales volume.
Buffett also said that experts predicting a slowdown in the U.S. economy are “probably” wrong.