This Buffett Stock Just Went on Sale. Time to Buy?

Group 1: Company Overview - Ally Financial has become the largest all-digital U.S. bank, known for low fees and high savings rates, and is recognized as a Buffett stock [1] - The company originated from auto lending as part of General Motors and became independent in 2009, going public in 2014 [2] - Auto loans remain a significant part of Ally's business, being the top prime lender in the U.S. with strong application volume despite market pressures [2] Group 2: Recent Performance and Challenges - Ally's stock experienced a 17% drop following a disappointing update regarding higher-than-expected credit challenges and auto delinquencies [4][5] - The CFO indicated that charge-off rates were worse than anticipated, and delinquencies may continue to rise due to inflation struggles among customers [4] - Despite rigorous credit approval mechanisms, the company failed to anticipate the current challenges, raising concerns about potential flaws in its system [5] Group 3: Management and Investment Perspective - Recent management changes, including the appointment of CEO Michael Rhodes, could impact the company's operations [6] - Despite current challenges, the core investment thesis remains intact, as Ally is a consumer-facing business with a strong economic role, offering a growing dividend [7] - The stock is considered a bargain at its current price, with a high dividend yield, making it potentially attractive for long-term investors [9]