Posted by Davy on October 1st, 2008 in Enlightened-American Portfolio, Gurus, Market Commentary
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Once again, Buffett picks up a sweetheart deal, this time at GE, with the same terms apparently as his Goldman Sachs investment.  $3B in perpetual preferred shares @ 10% yield + warrants to purchase $3B in stock (I don’t know what the strike price is on these $22.25 at any time during a 5-year period).  As with Goldman Sachs, this Buffett offering includes an additional equity offering of $12B.

As a GE shareholder, I’m kinda miffed.  This seems a high price to pay for confidence and why aren’t other shareholders (me!) offered the same opportunity?

The stock is halted.  Interesting to see where it goes from here.  Even if Buffett does boost confidence in GE, the boost may be short-lived, just as it was with Goldman Sachs.  Can’t someone introduce Buffett to another media heiress or something and keep him away from my portfolio?

Yuck.