Ignoring the Facebook IPO, Buffett casually invests in GM
According to The Detroit News Warren Buffett bought almost 10 million shares of General Motors stock through his company, Berkshire Hathaway, during the first quarter of this year. (In case you don't know, Warren Buffett is widely considered one of the greatest institutional investors of all time. Probably even “The Greatest!”)
This makes Berkshire Hathaway the 15th-largest investor in General Motors. Warren Buffett is known for “value investing” and has made many right calls over the years.
Dan Akerson, General Motor's CEO described Buffet as a "wise investor" on Wednesday. He also emphasized that he has a "track record to prove it."
The stock eventually ended the trading day on Wednesday at $21.91 per share up 2.29 percent. A impressive gain of 49 cents after Buffett's Berkshire Hathaway disclosed the buying of GM shares. Shares of GM ended trading week today at $21.18.
"It's a great vote of confidence in what we've done and what we hope to accomplish," said Akerson in an interview with The Detroit News regarding Buffett's investment into GM.
Even though this is a good vote of confidence for GM and the company's stock, it is important to note that when the company had an initial public offering back in November 2010, after emerging from bankruptcy aided by the government, shares were priced at $33 per share.