NEW YORK — News that Warren Buffett's Berkshire Hathaway Inc. has purchased junk bonds of Finova Group Inc. and Conseco Inc. helped boost the stocks of both companies on Friday.
Friday's edition of The Wall Street Journal reported that Buffett, a noted value investor, recently paid several hundred million dollars to buy the companies' junk bonds.
Berkshire Hathaway, which serves as Buffett's investment vehicle, owns Dairy Queen, Geico insurance and other businesses. It is based in Omaha, Neb.
Shares of Finova, a Phoenix-based commercial lender, jumped 25 cents, or 36.4 percent, to 94 cents apiece on the New York Stock Exchange.
Shares of Conseco, an insurance and finance company based in Carmel, Ind., rose $1.69, or 14.7 percent, to $13.19 apiece, also on the NYSE.