GE Message Board


Mark Mitchell

Media Coverage Charles Gasparino, the CNBC reporter,...



Scott Larsen

Market Makers It was obvious that when GE needed to...



Mahyar Hashemi

Market Makers I think if you actually watch him spe...



Perry Rod

Market Makers In December, I did a quick Christ...



Perry Rod

Analysis Lets do a quick overview of General E...


General Electric Co. Media Oversight


Jim Cramer

Moderated By
Mahyar Hashemi


Charles Gasparino

Moderated By
Market Rap

General Electric Co. Market Maker Oversight


Warren Buffett

Moderated By
Market Rap

General Electric Co. Executive Oversight


Jeffrey Immelt

Moderated By
Market Rap

General Electric Co. Featured Analysis


General Electric, and the Crumbling Myth of Warren Buffett

by Perry Rod, Published: February 13th, 2009 3:33 PM CST

In December, I did a quick Christmas valuation analysis of General Electric and concluded that $16 was too much to pay for the company, given the current market environment and the company's enterprise multiple.

Since then, GE (GE) has given up tens of billions in market capitalization and just recently bounced off a low of $10.66, a price that has not been seen in over a decade.

Meanwhile, the investment legend Warren Buffett was caught buying into GE when it was trading in the mid 20's.  Of course, when Buffett buys stock he gets extra special incentives.  He received an option to buy 3 billion GE at $22.25 in the next five years and also receives a 10% dividend (callable within three years).  Investors who followed him in, of course, have gotten a rude awakening - and no special incentives.

Warren Buffett has taken a hit, but it is just no comparison to the short term slaughtering of common investors or even hedge funds who mistakenly believed in Warren Buffett's extraordinary leadership position in the stock market.

It's important to note the difference between us and a person like Warren Buffett when it comes to the stock market.  For Warren Buffett, making a billion or losing a billion is meaningless for his day to day life.  A billionaire does not need any more money.  And a billionaire can lose a tremendous amount of money, but is highly unlikely to ever become desperate or in a survival mode.

It may be time for the myth that is Warren Buffett to be shaken.  Buffett’s father was, of course, a Congressman and stock broker.  Little Warren did not grow…

General Electric Co. SELECTED ARTICLES


New Evidence Raises Questions About Kingsford Capital - Links To Inc., Ot...
A blog published by the University of North Carolina School of Journalism reported rece...


Michael Milken, 60,000 Deaths, and the Story of Dendreon, Chapter 1
This story, like too many others, begins with Jim Cramer, the CNBC personality, making ...


Would General Electric's CNBC Allow Charles Gasparino To Say It On The Air?
Charles Gasparino, the CNBC reporter, published an op-ed in The New York Post yesterday...

Copyright 2014 All Rights Reserved; Patent Pending