- Warren Buffett's Berkshire Hathaway bought a 17.5 million share stake in Synchrony Financial, according to a regulatory filing on Monday.
- Synchrony is the largest provider of private label credit cards for companies such as Walmart, Amazon and Lowe's.
- Berkshire Hathaway's investment makes it the ninth largest holder in the company, according to FactSet.
Warren Buffett's Berkshire Hathaway has invested more money in financial stocks.
Berkshire Hathaway reported a 17.5 million share stake in Synchrony Financial, its June quarter 13F filing revealed Monday.
The position is worth nearly $520 million using Monday's closing stock price. Synchrony shares rose more than 4 percent midday Tuesday after the news.
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Synchrony is the largest provider of private-label credit cards for companies such as Wal-Mart, Amazon and Lowe's. Previously the stock declined 18 percent this year through Monday compared with 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 in 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.