Warren Buffett’s Berkshire Hathaway invested more money in financial stocks.
The position is worth nearly $520 million using Monday’s closing stock price. Synchrony shares rose over 4 percent midday Tuesday after the news.
Synchrony is the largest provider of private label credit cards for companies such as Walmart, Amazon and Lowe’s. Previously the stock declined 18 percent this year through Monday compared to the S&P 500’s 10 percent return.
Berkshire Hathaway’s investment makes it the ninth largest holder in Synchrony, according to FactSet.
Buffett has embraced the financial sector, which many believe is poised for growth after years of historically low interest rates and increased regulation.
He also raised Berkshire’s holdings of Bank of New York Mellon by 52.2 percent, to 50.2 million shares in the second quarter. In June, Berkshire announced it would convert warrants it has in Bank of America to 700 million common shares, which will make it the bank’s biggest shareholder once that conversion is complete.
—CNBC’s Liz Moyer contributed to this story