Buffett snags 10 million shares of GM stock

By Paul A. Eisenstein, The Detroit Bureau

Analysts and investors alike will be watching the ticker closely this week to see how the market responds to word that the “Oracle of Omaha” has grabbed 10 million shares of General Motors (GM) stock.

According to a filing with the Securities and Exchange Commission, Warren Buffett’s investment firm Berkshire Hathaway will spend $256.6 million for the stock, a nearly 20 percent premium over their value of $214.2 million when trading on the New York Stock Exchange wrapped up on Tuesday.

Shares of GM soared early on Wednesday before settling. GM closed the trading day up 0.50 points, or 2.33 percent.

Market Day - Buffett snags 10 million shares of GM stock