Best Stocks To Buy Now: Hedge Fund Breton Hill Likes Automobiles, Tobacco

#2 Ford Motor Company (NYSE:F)

Shares held (as of September 30): 563,377
Total Value (as of September 30): $4.65 million
Percent of Portfolio (as of September 30): 3.35%

Ford Motor Company (NYSE:F) shares are up 2% year to date as the U.S. economy picks up steam. Ford Motor Company (NYSE:F), which makes about 50% as many vehicles in China as GM does, isn’t retreating from China, as it recently announced it will invest up to $1.5 billion to increase market share in the country. If China’s economy recovers, Ford will reap big benefits. Ford could also benefit from Volkswagen’s recent recall troubles as well. Shares pay a 3.9% dividend yield. Richard S. Pzena‘s Pzena Investment Management owns 17.72 million shares.

# 1 General Motors Company (NYSE:GM)

Shares held (as of September 30): 295,995
Total Value (as of September 30): $ 8.89 million
Percent of Portfolio (as of September 30): 3.9%

General Motors Company (NYSE:GM) stock is roughly flat year to date as the company has largely moved on from its vehicle recalls and the U.S. economy remains strong. Given General Motors Company (NYSE:GM)’s forward PE of 6.38 and dividend yield of 4.33%, GM shares will be a great buy if China’s economy can pull through and vehicle sales don’t plummet. General Motors is no longer hobbled by legacy costs and pensions but the market doesn’t give the company as much respect as it gives Elon Musk’s Tesla. The market could be on to something, as General Motors needs to get better at the self driving and electric vehicle game to guarantee its future. Still, many smart money investors have faith in General Motors, including Warren Buffett‘s Berkshire Hathaway, which owns 41 million shares, and David Tepper’s Appaloosa Management, which owns 18.79 million shares.

Disclosure: none