"Warren Buffett's Berkshire Hathaway has disclosed that is has taken a 6.4% stake in CarMax (NYSE: KMX)," says value investor Nathan Slaughter.

CarMax, the used-car retailer, is a holding in Half-Priced Stocks, and the advisor sees Buffett's interest as an additional reason to stay bullish. Here is his review.

"Berkshire Hathaway is the insurance and investing conglomerate controlled by billionaire investor Warren Buffett, whose moves are widely followed by Wall Street.

"It's impossible to know for sure if Berkshire's stake is the result of Buffett's own buying or that of one of Berkshire's subsidiary companies, but either way it's a vote of confidence for CarMax. KMX has been sliding in recent months due to fears that a consumer slump would impact sales of used cars. But we continue to believe those concerns are overblown.

"The company offers a unique shopping experience that is unrivaled by traditional used-car dealerships -- the firm's superstores are well-stocked, offer haggle-free pricing, and provide painless trade-ins and vehicle financing.

"The used car business is highly fragmented in the U.S., so CarMax has room to grow simply by taking market share from smaller operators that offer less attractive services.

"With this in mind, we believe KMX can remain resilient in the face of a consumer slowdown.

"KMX trades at less than 20 times next year's earnings, and the company has a projected long-term growth rate of +18%. This represents outstanding value for a proven, fast-growing leader like CarMax, and we think this recent pullback presents an attractive buying opportunity."

Each day, Steven Halpern's TheStockAdvisors.com website features the latest investment commentary and favorite stock picks of the nation's leading financial newsletter advisors.