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Personal Finance Articles: Should You Invest In What Buffett Is? Goldman, GE etc..

Warren Buffett’s company is buying roughly $3 billion of GE preferred stock, GE is also selling $12 billion more of its common stock to the general public.  Preferred stockholders have a greater claim to a companies assets and earnings.

To put it in “average joe” terms preferred stock owners get a better deal.

Does this mean I don’t think you should invest in GE? Well yes and no.  GE is a good company, it is also a well diversified company.  My point is before you invest understand you are not getting as good of a deal as Buffett is, so your criteria of determining whether it is a good deal or not is different.

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Should I Put More Money or Less Money In My 401k

With the recent struggles in the stock market a fairly frequent question I get is should I start putting more money into my 401k or lower the contributions?

Personally, I started putting more money away in both my 401k and IRAs as I am investing in good quality mutual funds and they are currently at a discounted price.

People tend to follow the crowd, here is the basic mentality of the individual investor right now. Economy is bad, inflation is rising, stuff cost more, I should not invest as much.

Now I ask myself what should I do?  Go 100% against what the crowd is doing! I have doubled my contributions in recent months and will continue packing away as much as I can into my retirement accounts.  It is bargain time.

If you read my other personal finance articles, you will see additional investment advice of mine.  What are your thoughts?