Warren Buffett often makes investments that are out of reach for ordinary investors. But in the case of his recent car dealership deal, there's a rare chance to join him for the ride.
Last week, the Oracle of Omaha bought privately owned car dealership Van Tuyl Group for an undisclosed sum. The deal surprised some observers because annual domestic car sales have reached levels above 16 million—near a historical high.
The concern is that sales growth will be difficult to achieve and auto industry profits will stagnate. Indeed, shares of General Motors have fallen 24 percent so far this year while Ford has declined by 10 percent.
But Buffett recognizes that dealerships can thrive even without much growth in car sales. First, dealers can make just as much money selling extras like insurance and doing repair work. And given that the industry is very fragmented, it's reasonable to expect big players to scoop up smaller rivals through lucrative acquisitions over the next several years.