Warren Buffett's Berkshire Hathaway boosts stake in Ally Financial to nearly 10%

Billionaire investor Warren Buffett appears to have taken a liking to Ally Financial Inc., the Detroit-based auto finance company.

A regulatory filing from earlier this week shows that Buffett’s Berkshire Hathaway Inc. has more than tripled its stake in Ally (NYSE: ALLY) over the last quarter, building up an interest worth more than $1 billion based on the price of the company’s stock Friday morning.

In the second quarter of this year, the Omaha-based Berkshire’s stake in Ally grew from about 9 million shares to 30 million shares, according to the filing. Buffett’s conglomerate now holds nearly 10 percent of Ally.

A Reuters report from earlier this week points out that the filing does not specify whether it was Buffett or his portfolio managers, Todd Combs and Ted Weschler, who made the Ally stock purchases and sales. Larger investments are normally Buffett’s, according to Reuters.

Also within Buffett’s portfolio are large stakes in Apple, Chevron, Coca-Cola and Kroger. Berkshire also has about a $2 billion stake in Detroit-based General Motors Co., or about 3.6 percent of the company as of the end of 2021, according to an annual letter from Buffett to Berkshire Hathaway shareholders.

A spokesman for Ally Financial declined to comment on the investment, and a message left with Berkshire Hathaway was not returned Friday morning.

While Ally’s stock did jump earlier this week on the news that Berkshire boosted its stake in the company, year-to-date shares in the lender have fallen by more than 25 percent.