General Motors Company (NYSE:GM): white elephant-to-be or buried gold?

Oracle of Omaha Warren Buffet proves to be a blessing for every stock he shows an interest in. Having a reputation of only investing in high-quality businesses, investors don’t mind following his lead and purchasing “Warren Buffet stocks” because the Buffet factor proves and ensures investors of long-term valuable gains.

The tycoon’s initial investment of roughly $10,000 six decades ago is now estimated by Forbes at more than $68 billion as of this writing. As one of the forefathers of the buy-and-hold strategy, only a few are more prominent and successful than Buffet when it comes to investing. He has mastered playing with the powers of time and compound gains for benefits.

Buffet owns almost 33 million General Motors (NYSE:GM) shares: valued at $1 billion. While the company is not the most appealing to investors given its insolvency problems during the Great Recession, General Motors (NYSE:GM)’s business is closely knit to the American heritage. Yes, they do own record-setting automotive recall years, but their presence in the U.S. market for more than a century has rooted deeply within multi-generations of American families. This connection to the public may prove to sustain the automotive giant’s sales in the years to come.

In addition, The Wall Street Journal says that, year to date, General Motors (NYSE:GM) is leading among all car makers in the U.S., with 17.8% market share. The company sold more than 2.2 million vehicles in the U.S. through September. This is 4.3% more from their last year’s sales. The continuous support from consumers may be attributed to General Motors (NYSE:GM)’s heeding of their customers’ wants: they build cars according to how Americans want their cars. If purchasing companies that listen to their consumers to sustain their sales is not wise then what is it called?

Moreover, Buffet has great regard to General Motors (NYSE:GM) CEO Mary Barra. Barra has been able to get through the company’s recall woes this year. Right now, her focus is geared towards innovating their product line. As far as Buffet is concerned, Barra is “a real car guy.”

Last but not the least, General Motors (NYSE:GM) has been quite resilient against bankruptcy. While the costs for this year’s recalls cost billions, bouncing back is easy for the car maker given the market’s ability to quickly forgive PR crises. This period of depression due to short-term issues is one of Buffet’s known tell-tales. While the situation may appear in limbo at present, the future ahead is golden if not bright.

Just for the benefit of the doubt, there are chances that the investment tycoon’s gut feeling is wrong. General Motors (NYSE:GM)’s legal expenses due to their recalls may hurt their profits. Moreover, Ford (NYSE:F) is ringing market bells in the U.S. again and is increasing market hold in China and throughout Europe.

Being one of the owners of General Motors (NYSE:GM) is wise, but Ford (NYSE:F)’s rapid overseas growth does seem more appealing. Looking from within the U.S. market, however, General Motors (NYSE:GM) still has a stable hold in terms of sustainability of sales. It is important to note as well that their shares pay out a premium 4% yield, which is more than the broad-based S&P 500. The company may need work to sustain, but like a buried chest, the future has lots of gold.