Warren Buffett pumps $3 billion into GE preferred stocks

Warren Buffett the world’s richest man buys 3 billion dollars of General Electric preferred stocks, this is similar to the deal he did last week with Wall Street’s Goldman Sachs were he pumped in $5 billion to give the bank a helping hand.

Industrial conglomerate are fundraising for $15 billion to aid in calming nerves about the health of its financial arm. As the Buffett’s Berkshire Hathaway Investments empires buy the preferred stocks in GE it helps to reassure its stability.

Talking about GE, Buffet said that “it’s a symbol of American business to the world and they have strong global brands and businesses with which I am quite familiar. I am confident that GE will continue to be successful in the years to come.”

GE are also offering $12 billion of common stock to the public, the proceeds are said to aid in protecting the company’s triple-A credit rating and if needed fund acquisitions.

Read the full article in the guardian