How Well do You Know Warren Buffett's New Financial Stock?
A glance at any portfolio from Warren Buffett's Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) from any era proves that the man loves financial companies. As ever, these days some of Berkshire's largest holdings are in famous financials; big bank Wells Fargo is the company's No. 2 stock by market value, while credit card giant American Express (NYSE: AXP) isn't far behind at No. 5.
Recently, Berkshire Hathaway revealed in a regulatory filing that it amassed a nearly 17.5 million-share position now worth $533 million in Synchrony Financial (NYSE: SYF). Unlike Wells Fargo and AmEx, Synchrony is an under-the-radar company unfamiliar to many. What would attract Berkshire to such a seeming non-entity? Buffett has been mum on the subject so far, but we can tease out a few likely reasons.
For those not familiar with Synchrony and its operations, the company is an issuer of store credit cards. If you've got certain plastic from retailers such as Gap, Walmart, and even Amazon, among many others, you're a Synchrony customer.
Source: Fool.com
American Express Co. Stock
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