Buffet Buys 10 Millions Shares Of GM Stock
Analysts and investors alike will be watching the ticker closely this week to see how the market responds to word that the “Oracle of Omaha” has grabbed 10 million shares of General Motors (GM) stock.
According to a filing with the Securities and Exchange Commission, Warren Buffett’s investment firm Berkshire Hathaway will spend $256.6 million for the stock, a nearly 20 percent premium over their value of $214.2 million when trading on the New York Stock Exchange wrapped up on Tuesday.
Shares of GM soared early on Wednesday before settling. GM closed the trading day up 0.50 points, or 2.33 percent.
But that’s still well behind the $330 million Buffett would have invested during GM’s November 2010 IPO. And the question is whether this move signals the possible turnaround in GM shares which have been lagging like most automotive stocks in recent months.
The maker has staged a modest recovery from its $19-a-share 52-week-low, and GM stock surged by $1 as soon as the market opened Wednesday morning before settling back slightly.
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