Owen

Does Warren Buffett Think Goldman Is More Creditworthy Than GE?

No, it isn't possible. His warrants become worthless if the common share price falls. The best outcome for him now is if GE fully recovers, and his warrants are deep in the money. The preferred will likely be called once alternate financing is secured, for a quick and easy 10% return for Buffett. He only bought the preffereds to get the warrants.


If you think GE preferreds are a good deal, why not buy some yourself? You don't have to be a member of royalty to buy them.


On Oct 01 03:31 PM Michael D. wrote:

> He is buying preferreds. The result may be that he milks the cash
> cows for all they are worth and then leaves the empty husk for the
> common stock holders (you and me). Is this possible?