Warren Buffett is buying (now GE) and so should you!

Discussion in 'Wall St. News' started by crgarcia, Oct 1, 2008.

  1. Warren Buffett is buying, GE, GS, etc.
    And so should you.

    Stop trying to pick the exact bottom, nobody can.
    Just buy now and hold for 2 or 3 years.

    Warren Buffett invests $3 billion in GE
    Wednesday October 1, 2:22 pm ET
    GE to sell at least $12 billion shares to public; Warren Buffett invests at least $3 billion

    FAIRFIELD, Conn. (AP) -- Warren Buffett's Berkshire Hathaway is buying $3 billion worth of General Electric preferred shares, even as the diversified conglomerate is preparing to sell at least $12 billion worth of common stock to the public.

    GE says Berkshire Hathaway Inc. will buy $3 billion of perpetual preferred stock in a private offering. Such stock carries a dividend of 10 percent and is callable, at a 10 percent premium, after three years. Berkshire also received warrants to buy $3 billion worth of common shares at $22.25 each over five years. GE says that the Berkshire funds will boost its capital position and permit it to make opportunistic investments if they arise.

    The deal comes on the same day Fairfield, Conn.-based General Electric Co. said it was having no trouble selling their commercial paper, short-term loans it arranges directly with institutional investors.

  2. vv111y


    That's interesting. I wonder how difficult it was for them to set this up?
    How about anyone else - how difficult could it be?
  3. But Buffet did not buy GE or GS common stock. Buffet got special deals (10% preferred stock and long term warrants) that pay him very well to wait for better days. The rest of us cannot get in on Buffet's special deals and are left with the higher risk and lower return choices.
  4. Reminds me of John Rockerfeller's quote in the midst of the stock market crash of the late 20's and early 30's ... "my sons and I are buying common stocks"