Warren Buffett is on CNBC this morning, and he just announced that Berkshire Hathaway has purchased Van Tuyl Group, a company based in Arizona that owns 78 auto dealers.
He also strongly suggested that Berkshire will buy more auto dealers, probably using Van Tuyl as a vehicle to do an industry rollup.
Why the move?
It's clear Buffett thinks there's plenty of room for consolidation in the industry, as Buffett notes that there are 17,000 in the country.
Folks on Twitter are also pointing out that dealers have great real estate often, and nice, regulated moats in their industry, which is the kind of thing that Buffett likes to own.
For more on Buffett's CNBC appearance, see here.
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