Warren Buffett Buys Another 5 Million Shares In GM
Berkshire Hathaway, the investment arm of billionaire Warren Buffett, has acquired another 5 million shares in General Motors. The company has raised their stake in the company to 15 million shares for the quarter ending September 30th. David Einhorn of Greenlight Capital boosted their stake to 21.6 million shares from 17.4 million shares as of June 30th.General Motors chairman and CEO Dan Akerson had described Warren Buffett as a “wise investor” back in May.
“It’s a great vote of confidence in what we’ve done and what we hope to accomplish,” stated Mr. Akerson in an interview with The Detroit News.
General Motors stock is trading below the price from their IPO in November 2010. The U.S. Treasury Department owns 26.5% of GM stock after giving the company $49.5 billion in the form of a bail-out. The government is not expected to sell any GM stock until 2013 and will not do so until a new treasury secretary is in place. The U.S. government would need to average around $53 per share to break even.
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