It was revealed on Monday that Warren Buffett’s Berkshire Hathaway (NYSE: BRK.B) bought 2% stake ($520.7 in value) in the company. The information came from the company’s filing with the Securities and Exchange Commission.
As a result Synchrony’s shares jumped up 4%, giving it a market capitalisation of about $25.4 billion on Tuesday.
Interestingly enough, Synchrony shares have shed about 15% over the last seven months, as investors were loosing confidence in the company because of Synchrony's volume of bad loans.
Nevertheless it only took Warren Buffett to show interest in the company and investors brought it $1 billion overnight.
Berkshire Hathaway eliminated its entire $315.4 million stake in General Electric (XETRA: GEC) and boosted its investment in the Bank of New York Mellon Corp, increasing its stake to 50.2 million shares from 33 million in March and in Store Capital ($418.1 million stake).