Warren Buffett and Berkshire Hathaway Are Investing in Ally Financial. Should You?

In its recently released 13F regulatory filing, which shows what stocks a company bought and sold in any given quarter, Warren Buffett's conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) disclosed a new stake in the digital consumer bank Ally Financial (NYSE: ALLY). Berkshire purchased roughly 8.97 million shares in the first quarter of 2022 for a total value of close to $390 million. Berkshire's average cost was roughly $43.48 per share.

Ally is by no means a big position for Berkshire and makes up just a small fraction of the holding company's nearly $347 billion equities portfolio. But the move is interesting, nonetheless, considering Berkshire sold so many of its other bank holdings in 2020 and 2021. Should you invest alongside Buffett and Berkshire in Ally? Let's take a look.

Image source: Motley Fool.

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Source Fool.com