Lilguy

Why Is Everybody Selling as Buffett Is Loading Up?

If I could get the deals that Warren has, I would invest too. Unfortunately, I don't have billions sitting around in my mattresses.

This capital enables him to get extremely good deals--at the front of the line in terms of preferred shares, earning interest at rates unheard of for the "common man," and having an option to buy stocks below at or below current market prices when the long-term expectation (& Warren's only concern) is that they will go up.

About the only way I can get that deal is to invest in BRK!

GE Earnings: Industrial Bellwethers Are Now Getting Hit

Kathy--Despite its inclusion in the DJ Industrials, GE is truly the poster child for conglomerates. Its earnings fell short because of shortfalls in its large (40% of revenues) financial business, not in manufacturing. The key reason the stock dropped today is that the CEO said things were OK as recently as two weeks ago, so the downside surprise was really a surprise to WS analysts. (I don't think it was a surprise to serious investors who research the stocks they buy.)