Warren Buffett’s Berkshire Hathaway has probably scored a 70% gain on General Motors in the past four months, boosting the value of its investment by around $1.6 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 close to 70% to an all-time high since then, lifting the value of Berkshire’s stake by roughly $1.6 billion to $4 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 as much as 13% in the past day alone, fueled by CEO Mary Barra and her team detailing their plans to roll out 30 new electric vehicles by 2025 at the 2021 Consumer Electronics Show on Tuesday.
GM’s bosses also trumpeted their progress in developing nascent technologies such as autonomous driving and even flying cars during the virtual event.