Warren Buffett's investing powerhouse, Berkshire Hathaway Inc. (NYSE: BRK.B), took a 10 million share stake in General Motors Company (NYSE: GM) during the first quarter, an investment it disclosed Wednesday, delivering a 2.29 percent bump to the car company's shares and a welcome dose of investor confidence.
Detroit-based GM shares gained as much as 4.3 percent on Wednesday and closed up 2.29 percent to $21.91 following the disclosure of Berkshire Hathaway's investment, according to Bloomberg News. On March 31, Buffett's investment company held 10 million shares of the nation's largest automaker.
At the close of the business Wednesday the shares were worth approximately $219 million.
Omaha's Berkshire Hathaway sometimes receives special permission from the SEC to delay disclosing purchases to prevent investors that follow Buffett's moves from driving up the cost of the stocks before Berkshire Hathaway has completed its buy, according to the Washington Post.
Buffett is known for preferring to invest in companies he sees as undervalued. However, it is not known if Buffett or one of his two lieutenants at the firm made the investment.
GM has a lot of good product in the showroom and product coming in 2013. When we look at the economy, at the fundamentals of the industry and the company, the stock's a buy, David Kudla, Mainstay Capital CEO, said according to Bloomberg News.
General Motors Company (NYSE: GM) shares rose 0.05 percent to $21.92 in after hours trading. Berkshire Hathaway Inc. (NYSE: BRK.B) shares closed up 38 cents at $80.59.