Buffett, Other Big Investors Boost GM Holdings

Billionaire Warren Buffett's Berkshire Hathaway Inc. and a number of large investment management firms increased their stakes in General Motors Co. during the second quarter.

Mark Reuss, president of GM's North American operations, tells reporters the stock purchases by Buffett and others make company officials "feel like we're on the right track."

Analysts note that a large portion of the investments were probably spurred by GM's return to the S&P 500 index in early June. Index funds must match their portfolios to the stocks in the S&P 500. The buying occurred as the company's largest shareholder, the U.S. Dept. of the Treasury, continued to sell its GM holdings.

Berkshire Hathaway, which initially bought the company's stock in 2012, hiked its investment 60% to 40 million shares, or nearly a 3% stake, during the April-June period.

Other buyers and their latest purchases included such financial services companies as Harris Associates, State Street Corp., BlackRock and Vanguard Group.