Warren Buffett Buys More Shares in GM image

Investment firm Berkshire Hathaway increased its stake in GM by two-thirds during the fourth quarter.

The investment firm Berkshire Hathaway, which belongs to Warren Buffett, closed the deal the same day the billionaire investor announced an agreement with 3G Capital, according to which they will jointly acquire condiment producer Heinz.

During the fourth quarter Berkshire Hathaway purchased 10 million GM shares, increasing its total number of shares to 25 million, according to a filing with the Securities and Exchange Commission. The total worth of this stake is $694 million, which means Berkshire became one of the largest single shareholders of the US automaker.

The first investment Berkshire made in GM was during the first quarter of 2012, when it bought 10 million shares for $256.6 million, making the company have second thought about this deal when GM’s stock dropped below $19 in July. Fortunately, the stock is now back on the track, closing at $27.75 yesterday, February 14th.

While Warren Buffett continues to buy GM shares, the US Treasury is struggling to sell all of them and exit the automaker once and for all. After selling 200 million shares for $5.5 billion to GM, the Treasury has 300.1 million shares left to be sold by 2014.