Warren Buffett 'sBerkshire Hathaway has likely scored a 65% gain on itsGeneral Motors bet in under four months.- The billionaire investor's conglomerate backed the automaker in 2012 and grew its stake to 80 million shares worth $2.4 billion at the end of September.
GM stock has soared by about two-thirds to a record high since then, increasing the value of Berkshire's stake to about $3.9 billion.- The auto giant's shares have rallied strongly due to excitement about its advances in electric vehicles as well as futuristic technologies such as self-driving and flying cars.
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Warren Buffett's Berkshire Hathaway has probably scored a 65% gain on General Motors in the past four months, boosting the value of its investment by around $1.5 billion.
The famed investor's company took a stake in the automaker in 2012, snapping up 10 million shares worth about $260 million at the time. It steadily grew the position to 80 million shares worth $2.4 billion as of September 30 last year.
GM's stock price has jumped by about two-thirds to an all-time high since then, lifting the value of Berkshire's stake by roughly $1.5 billion to $3.9 billion, assuming Buffett and his team haven't touched the holding. They will disclose the contents of their stock portfolio as of December 30 in mid-February.
The automaker's transformation efforts are driving its stock rally. Its shares have surged 8% in the past two days, fueled by CEO
GM's bosses also trumpeted their progress in developing nascent technologies such as autonomous driving and even flying cars during the virtual event.
Rival automaker
The prospect of GM snatching some of Tesla's market share has likely prompted investors to revalue the company, benefiting Buffett in the process.