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Why Would Buffett's Berkshire Bulk Up on Credit Cards?

Synchrony Financial is the latest company to receive a ringing endorsement from Warren Buffett's Berkshire Hathaway Inc. What's the takeaway for the rest of us?

The $24 billion issuer of private-label and other credit cards saw its stock surge more than 6 percent in after-hours trading on Monday after a Berkshire filing revealed that the conglomerate is now a top 10 shareholder, with a stake of roughly 2.2 percent. It's unclear if Buffett himself or one of his two lieutenants (Todd Combs or Ted Weschler) sniffed out Synchrony, but there are a couple of immediate explanations for the Berkshire position.

The first? Nobody in Omaha must be losing sleep about worsening trends in consumer credit, which my colleague Lisa Abramowicz has rightly noted could lead to losses but...