Buffett Why not buy U.S. auto stocks

 Jiangling Motors today announced its first quarter 2010 report: January to March 2010 earnings per share of 0.57 yuan, 6.18 yuan per share, net assets, return on net assets 9.71%; to achieve total revenue of 3.566 billion yuan, an increase of 65.24%, net profit of 495 million, an increase of 170.64%.
while Jiangling B stocks reaching record highs, as have not yet closed, do not know how much a new high.
that the automotive industry is the simple cyclical industry, the simple view that the peak last year, the automotive industry, automobile industry this year is the turning point, a simple view that the automotive industry is a sunset industry with high capital expenditure can not invest comrades ah, history, the Grand Theatre, though always continue to repeat the same repertoire , but also the opportunity to launch new play at the right purpose.
knowledge of any transaction, can not blindly follow authority blindly follow the trend, independent thinking is the essence of the first investors. say that Buffett does not invest in the business on wheels Why Warren Buffett does not invest in U.S. auto stocks, but his later years went to China to invest BYD. take a look at the history of the U.S. auto industry may see some clues, the United States in 1929, the year of economic crisis, automotive sales have reached 500 million, the highest sales in the U.S. automotive history, but also 18 million. Buffett began his partner has a 1956 thing, I did not find that in 1956 the number of U.S. auto sales, but can certainly be more than 1929, then four years of the history of Buffett's investment of time, auto sales estimates will more than double (assuming that 1956 car sales at 900 units annually), while the auto industry with high inherent characteristics of capital expenditure will spend most of the profits out of car makers, U.S. auto stocks in 40 years this is not good investments. Why Warren Buffett to invest in China BYD present it, I suppose, is to judge China Buffett the current rapid development of automobile industry can be offset by high capital expenditure to the erosion of profits, so the auto industry in the United States is not a good investment products, it is a good investment in the Chinese varieties.
mouth closed so the value investors are not nouns, and what can not invest in cyclical industries, ah, what the industry can not invest in high capital expenditure, ah, what a sunset industry can not invest ah! on Buffett recently invested huge amounts mm the rail industry in the United States decades ago is a sunset industry, This investment is no doubt the old bus is a lesson to the majority of value investors.
value investors only need two things mm clear value and price, this is the fundamental value investing, there is no investment in the industry can not , does not exist can not invest in companies, value investing is not closed!