Buffett Sticks It to GE, GS Shareholders
Berkshire's meeting should be Woodstock of capitalism.
Greetings from Englewood Cliffs, New Jersey, where I'm taking part in a General Electric (GE) pledge of allegiance to Warren Buffett.
The Oracle of Omaha just struck a deal to purchase $3 billion worth of "Perpetually Preferred" stock, paying a 10% dividend. In a shocking coincidence, GE, in turn, used Buffett's Blessing as a marketing kicker for 557.8 shares in a secondary this morning.
For those not fond of reading fine print, the primary difference between the shares Buffett bought and those sold to commoners was that Warren's are guaranteed to kick off $300,000,000 per annum; those buying the secondary have only the perpetual hope that there will be anything left for them.
As previously detailed by Professor DePew, Buffett has become the single greatest product endorser of all time. Between GE and the $5 billion of Goldman Sachs (GS) Mr. Buffett picked up on similar terms, there will be some $800 million in perpetually preferred greenbacks flowing into Omaha while Warren decides whether or not to cash in on the related warrant kickers in GE and GS.
Presumably those attending the Woodstock of capitalism that is Berkshire Hathaway's (BRK.A) annual meeting will be allowed to take a cat o' nine tails to the bound and gagged bodies of Jeff Immelt and Lloyd Blankfein after enjoying a nice bottle of Cherry Coke, a Dilly Bar and other Buffett-related paraphernalia.
Actionable ideas, instant analysis. Real-time from bell to bell.
Minyanville's Buzz & Banter- 14 day Free Trial
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter