2 Electric Vehicle Stocks in Warren Buffett’s Portfolio By StockNews

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© Reuters. 2 Electric Vehicle Stocks in Warren Buffett’s Portfolio

Rising prices and worldwide governmental initiatives to reduce carbon emissions make the prospects bright for electric vehicles (EVs). In fact, Warren Buffet’s optimism about the EV industry’s growth prospects motivated him to add BYD Company (OTC:) (BYDDF (OTC:)) and General Motors (GM) to his portfolio. So, we think it could be wise to bet on these stocks now. Read on.Arguably the world’s most respected and successful investor of all time, Warren Buffett is known for his value investing strategy. He preaches a long-term investing strategy in which investors buy an undervalued stock and hold it for an extended period to benefit from the company’s gradual growth. Buffett’s latest bets have been in the electric vehicle (EV) industry, which he believes has immense growth potential given the rising demand for efficient and low-emission vehicles and governments’ policy support to address climate change concerns.

Investors’ increasing interest in the EV space is evident in the Global X Autonomous & Electric Vehicles ETFs’ (DRIV) 8% returns over the past month versus the tech-heavy Nasdaq’s 6.2% returns. According to a Research and Markets report, the global EV market is expected to grow at a 26.8% CAGR between 2021 – 2030. And President Biden’s proposed infrastructure plan includes significant spending for the EV industry. He aims to build 500,000 EV charging stations by 2030.

Given the industry’s promising prospects, Buffet is highly optimistic about the long-term performance of BYD Company Limited (BYDDF) and General Motors Company (NYSE:). So, we think it could be wise to scoop up these stocks now.

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