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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