DETROIT – The news broke long after the closing bell on Wall Street.
A federal filing shows billionaire Warren Buffett's holdings firm purchased 10 million shares of General Motors stock sometime this year.
"It's a vote of confidence from the most prominent investor in America, in the whole world," said Jamie Butters, an automotive analyst for Bloomberg News.
The GM investment cost Buffett's Berkshire Hathaway an estimated $256 million.
Butters says even at 10 million shares, the number represents a small slice of the pie. But the overall impact could be huge.
"It has sort of the sense of telling Detroit, and this area where GM has so much of its manufacturing and white collar presence, that there's a strong future here and more growth to come and hopefully some job security for our neighbors," Butters said.
The firm's other big investments include Wal-Mart, IBM, Kraft Foods and DirecTV.
General Motors is three years out from bankruptcy. The investment from Buffet is considered a big sign of optimism for the automaker.
Analysts say when Buffett makes a move many investors are typically quick to follow.
"It's a great show of confidence in GM," said Butters. "Confidence that the company is going to continue to be profitable, that the industry will continue to be strong."
Buffett's firm is now GM's 20th largest shareholder. The U.S. government still holds the No. 1 spot.
According to published reports, Buffett's firm has not invested in Ford Motor Company or Chrysler.