Buffett's Berkshire Hathaway Adds Stake in GM

By FOXBusiness

Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) holding corporation has picked up a stake in General Motors (NYSE: GM), buying 10 million shares of the Detroit auto maker.

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The new stake was included in regulatory papers filed with the Securities and Exchange Commission on Tuesday.

News of the purchase sent shares of GM higher in after-hours trading. GM is still recovering from bankruptcy and a massive restructuring in 2009. The bankruptcy allowed GM to shed a ton of debt and a big government bailout helped the company get back on its feet. A streamlined operation has helped GM to return to profitability.

A big car maker fits the description of companies favored by Buffett’s company. He has said in the past he likes old fashioned companies such as railroads.