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Investor Warren Buffett buys 10 million shares of GM

Reaper

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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.

general-motors-stock-price1.jpg
 

VS 5.0

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I can think of better things to blow a lazy $42.4m in a day on !
 

SavVYute

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Apparently Warren Buffett drives his own car to work, and its a 2006 Cadillac DTS.
Think GM might give him a good price on his next one?
 

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So by reading it right he buys 10 million shares, lose some cash cos it drops 1% and then makes 3% when it goes up 4%?
 

monkeys437

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I can think of better things to blow a lazy $42.4m in a day on !

He didn't blow $42m, he still owns the same amount of the company he did before the price fell.

Buffett doesn't make money gambling on the daily ups and downs he buys businesses whos share prices are way lower than they should be based on revenue, profits etc. By his reasoning GM would still be undervalued so the percentage of the company he owns was still a bargain

Have a read up on his investments in Coca cola over the years. The mans a genius and if he's investing in GM then they must have a decent future
 

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I posted this article because I'd suspect it has been a **VERY** long time since somebody with the standing of Buffett, arguably one of the worlds most successful investors, has put any money into GM. Monkey is right. Buffet puts his money where he sees value - ie under valued companies. The guy doesn't always pick a winner but overall his win/loose ratio is up with the best in the world.

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