General Motors‘ stock rose as much as 4.3 per cent to US$22.35 ($22.48) a share on Tuesday, the most in almost a month, as a result of the disclosure that Warren Buffett’s Berkshire Hathaway Inc. bought a stake in the automaker back in March of this year.
Automotive News reports that Berkshire, whose chairman and CEO is the world’s third richest person according to Forbes’ Billionaires List, said in a US stock holdings disclosure that it held 10 million shares of the American automaker on March 31, 2012.
“Seems like GM’s low valuation is just too good for Warren to resist,” Morgan Stanley analyst Adam Jonas said in a report to investors.
The news follows GM’s decision to pull ineffective Facebook advertising just days before the social media network is to be publically offered.
Last year General Motors was the world’s top-selling automaker posting a record US$9.19 billion ($9.24 billion) profit.