No Moss

What Does Warren Buffett See in General Electric?

Actually, Buprestid, Warren Buffett does own a significant position in GE from previous purchases (7.8 million shares). You can view his (actually Berkshire Hathaway's ) holdings as of 6/30/2008 at this web-site:

www.marketfolly.com/20...

His largest single holding is Coca-Cola.

What Does Warren Buffett See in General Electric?

This is the second article in which this author, who holds a short position, has postulated a drop from $21 to $10, without supporting his position. Well, I believe the stock will be $30 next year. I have no support for that position either. I am long the stock.

If I were short the stock, I would certainly be making unsupported statements to the effect the stock will halve in value by next year. Flog if long, flame if short.

Be Like Buffett: Get Off the Roller Coaster

Curbs-In and I disagree on the idea of brands. Brands like Gillette or Johnny Walker are virtually impossible to replace or displace. In the case of Gillette, they have virtually no competition and are able to charge premium prices for their top-end products. Getting and keeping shelf space is easy to do for a proven seller, and difficult to do for a beginning product.

GE's main problem, to nobody's surprise, is that it's vulnerable to the credit crisis and to the real estate market. Secondarily, it's vulnerable to a worldwide slowdown. I wish I hadn't bought it, but at $22 and change it's on sale. AAA rating, solid businesses, and sufficient income to at least maintain the dividend and work through the crisis. I don't see what's not to like with GE at this price.

Be Like Buffett: Get Off the Roller Coaster

I would generally agree. Diageo has been down ever since I bought it last year (at $87), but I have hopes it will rise at some point. Like GE, from $37 to the low twenties. I think these are both solid buying opportunities. GE in particular will come roaring back when it gets over the credit crisis.

General Electric, Berkshire Hathaway: Winners in a Losing Market

I think GE's value will be realized fairly soon now. It has been flat for many years despite a record of increasing earnings and dividends. If it breaks out, it could be a large breakout, perhaps up to $40 by year end. It should be trading at a multiple of at least 17, which would give it a price of $41 on concensus earnings of 2.43 for 2008.

I don't know enough to make recommendations, but I'm sort of surprised that they keep NBC Universal. It just doesn't seem to be congruent with their other holdings.

Water, power, transportation, medical devices--good stuff. Siemens got their tail kicked. Maybe it's hard to compete in Euros with GE quoting in dollars.