Warren Buffett Buys 10 Million More Shares of GM

By | February 18, 2013
With the purchase of 10 million shares of General Motors, Warren Buffett's Berkshire Hathaway Inc. has lifted its holdings in the company to 25 million shares. Disclosed in a Securities and Exchange Commission filing this past Thursday, this latest investment is due to the U.S. government unloading a portion of their shares to the public. In the New York Stock Exchange, GM shares fell 3.2 percent, directly following the company's fourth quarter and 2012 financial results report. Berkshire's shares alone are worth about $694 million, based on Thursday's closing price. Berkshire Hathaway Inc. is now one of the automaker's largest shareholders. With his long-term view of equity markets, Buffett is a well-known value investor. On top of being a top shareholder with GM, Berkshire Hathaway Inc. is also partial owner of BYD Co., a Chinese carmaker specializing in electric vehicles. In early 2012, Berkshire bought 10 million shares of GM, and bought another 5 million shares in the third quarter of 2012. Dan Akerson, former managing director for a private equity firm and current GM Chairman and CEO, called Buffett a wise investor with a proven track record. With his new purchase, it seems as though in the long run, GM will turn itself around and continue to do better. Source: Automotive News
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