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Berkshire Reports Synchrony Stake While Exiting Former Parent GE

  • Buffett’s company reduces holdings in airlines, Wabco
  • Bets increase on General Motors, Bank of New York Mellon
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Warren Buffett continues to bet on credit cards. A regulatory filing shows Berkshire Hathaway has taken a stake in Synchrony Financial worth about $520M. Bloomberg's Jennifer Surane reports on 'Bloomberg Markets: Asia.' (Source: Bloomberg)

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Warren Buffett has long preached the importance of investing in businesses that are hard for competitors to copy. That may be part of why his Berkshire Hathaway Inc. built a $520 million stake in Synchrony Financial during the second quarter.

The credit-card company, which was spun off by General Electric Co. two years ago, is a leader in issuing plastic under the brands of its retail partners. And like American Express Co., in which Berkshire is the biggest investor, Synchrony operates a payments network while also making loans.