Preferred Stock Makes a Comeback

Buffett bought preferred stock from GE in another play where he gets at least 10% on his money. He invested $3 billion in GE so that he'll get at least $300,000,000 a year in dividends which he can add to his $500,000,000 in Goldman Sachs dividends. And, as with Goldman, he has the warrants to buy the stock at $22.25; it closed today at $24.50. In the GE deal, GE can buy the preferred back within 3 years at a 10% premium.