There are certain must-have status symbols for the rich and famous: yachts, private jets, mansions in the Hamptons — and now, apparently, car dealerships.
Warren Buffett became the latest billionaire to buy into the industry when his Berkshire Hathaway Inc’s acquisition of the Van Tuyl Group, the largest privately held dealership group in the United States, closed last week.
It was the biggest acquisition in automotive retail history, giving the newly dubbed Berkshire Hathaway Automotive 81 dealerships with more than US$9 billion in annual revenue, and Mr. Buffett signalled that this is just the start of his foray into the car-sales business.
“This is the beginning of a journey that will have no end,” Mr. Buffett said in a statement the day the acquisition closed.
“Cecil and Larry [Van Tuyl] have given us the ideal platform with which to build an auto dealership business that will be thriving and growing 50 and 100 years from now. The fun has just started.”
Mr. Buffett joins an impressive list of magnates who have invested in car dealerships. Microsoft Corp. co-founder Bill Gates owns more than 15% of U.S. dealership group AutoNation Inc., while Eddie Lampert, founder of hedge fund ESL Investments and CEO of Sears Holdings Corp., owns 12%.
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