For as long as I could remember General Electric (GE) was supposed to be one of those “reliable” stocks. They didn’t move too much to quickly; however, the lack of risk made them desirable to many long term traders. I have personally never been a fan of them for that reason; however, over the last year, GE has taken a big move downwards, while down nearly 50%. For a stock that has stayed in the same trading range for years at a time, that is a pretty significant move.
So I was not surprised when Warren Buffet called me the other day to ask my advice. I told him I’d have to get back to him, at the time I was busy teaching Bill Gates how to turn on a computer… but that is a story for a different time.
It seems Buffet got bored with Goldman Sachs (GS), so now Buffet is looking to also put some money into GE. He feels both of these companies will benefit heavily after the credit crisis has dwindled down. How long that could be no one knows, but, taking GE’s rate of movement, it would probably not be any shorter than a year.
Buffet will most likely make more because he is authorized to buy certain shares at lower prices. Eventually you learn the more money and power you have the cheaper you can get things. Just look at some of Donald Trump’s perks.