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.

Stock investing can be hard, but only for those who have not researched or prepared via reading stock trading tutorials.  Not doing the research on a stock and buying it is called gambling.

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