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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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