Warren Buffett betting big on General Motors
Warren Buffett (AP photo)
Posted: 05/16/2012
Billionaire Warren Buffett is making a big bet on General Motors stock. Buffett's company Berkshire Hathaway has disclosed in a filing that it purchased 10 million shares of the automaker, during the first quarter.
Analyst David Zoia, of Wardsauto.com says "It is a sign that he believes the stock is under valued." Zoia goes on to say "Buffett is considered a superstar investor". He says anytime someone like that shows an interest in any stock, it sends a message to other investors.
This is the first time that Buffett has bought stock in the company since it survived bankruptcy. Many analysts believe that the government's continued stake in GM has kept the stock price down.
After word of the Buffett investment broke, GM stock jumped nearly 4 per cent, after hours, in heavy trading.
Buffett is not an investor in either Ford or Chrysler.
Copyright 2012 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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