Buffett's Berkshire Hathaway Brings GE To Life
ARI SHAPIRO, host:
NPR's business news starts with Warren Buffett's buying spree.
(Soundbite of music)
SHAPIRO: The old adage says buy low, sell high. Well, financial turmoil has driven many companies' stocks so low that if you've got a bit of confidence and a lot of cash, like Warren Buffett, it's not a bad time to buy. And that's exactly what he's doing. Yesterday, the legendary investor agreed to buy at least $3 billion of stock in General Electric. GE stock has fallen almost 50 percent since last year. Investors have been worried about the impact of the credit crisis on GE stock. Almost half the company's profits come from its finance business. Buffett's move comes about a week after his company Berkshire Hathaway agreed to sink $5 billion into the investment bank Goldman Sachs. Goldman stock is also down nearly 50 percent from its peak last year.
NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.