Fell off the table over the last 5 years. Buy it for the dividend, if desperate I guess.
Yeah. Buffet is one desperate motherfucker.
Can you please provide a link to where you get your graphs?
Just a small modification, if you please:
General Electric Co. announced an offering of “at least” $12 billion in common stock as the economic bellwether joined a number of other financial giants that have been forced to raise capital in recent weeks.
In addition, Warren Buffett’s Berkshire Hathaway again slid into the role of a rescuer as it agreed to buy $3 billion in perpetual preferred stock from GE in a private offering.[/i]
From the WSJ.
Buffett is buying perpetual preferred stock with a 10.5% yield, not common stock. He trusts in dividends here, not ownership (yet).
For more interesting tidbit on GE, also see WSJ’s article on its commercial paper. Yields have gone from 4 to 10% in a few months. (Another buying opportunity?)
How much this reflects on GE and its earnings, and how much it reflects on the general credit panic, is open to discussion.[/quote]
Good Stuff! I wondered why the common didn’t get a big boost from his buy in. He’s basically lending them cash so they don’t go the way of the DoDo, like so many of these other financial companies. 10.5% IS a good deal especially from an old-line Dow 30 fixture stock.
Wouldn’t the issuance of such a preferred though decrease the value of the common? Also, GE having to pay such a high rate tells me that they’re in trouble. Between that and the 10 year chart I posted, I’d run from this turkey. The common, that is. That preferred is a sweetheart stock.