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Investor Warren Buffett buys 10 million shares of GM
Legendary investor Warren Buffett's Berkshire Hathaway disclosed today that it had acquired 10 million shares of General Motors' common stock.
Berkshire Hathaway purchased 10 million shares for a total investment of $256.6 million. Those shares were worth $214.2 million when the market closed today.
It was not immediately clear whether Buffett himself was involved in the investment, or whether it was made by one of his associates.
Buffett is known for making big bets on companies he views as undervalued, although the GM investment would be on the smaller side for the Nebraskan investor nicknamed the "Oracle of Omaha."
"It confirms the investment thesis that we've had on GM," Morningstar analyst Richard Hilgert said. "We definitely see some value there, just as Mr. Buffett does, and hopefully this will draw a little more attention to the stock from investors."
GM's stock, which fell less than 1% today to close at $21.42, rose nearly 4% in after-hours trading.
GM spokesman Jim Cain declined to comment, saying the automaker typically does not discuss specific investors.
GM shares were priced at $33 during the company's initial public offering in November 2010.
UBS Investment Bank analyst Colin Langan said in a research note Monday that he still recommends buying GM shares with a price target of $30.
A Berkshire spokeswoman was not immediately available to comment.
Legendary investor Warren Buffett's Berkshire Hathaway disclosed today that it had acquired 10 million shares of General Motors' common stock.
Berkshire Hathaway purchased 10 million shares for a total investment of $256.6 million. Those shares were worth $214.2 million when the market closed today.
It was not immediately clear whether Buffett himself was involved in the investment, or whether it was made by one of his associates.
Buffett is known for making big bets on companies he views as undervalued, although the GM investment would be on the smaller side for the Nebraskan investor nicknamed the "Oracle of Omaha."
"It confirms the investment thesis that we've had on GM," Morningstar analyst Richard Hilgert said. "We definitely see some value there, just as Mr. Buffett does, and hopefully this will draw a little more attention to the stock from investors."
GM's stock, which fell less than 1% today to close at $21.42, rose nearly 4% in after-hours trading.
GM spokesman Jim Cain declined to comment, saying the automaker typically does not discuss specific investors.
GM shares were priced at $33 during the company's initial public offering in November 2010.
UBS Investment Bank analyst Colin Langan said in a research note Monday that he still recommends buying GM shares with a price target of $30.
A Berkshire spokeswoman was not immediately available to comment.