Most investors know the famous Buffett saying that the best way to get rich is to “be greedy when others are fearful”. That means that deep value investing, buying stocks that the Wall Street absolutely hates, can be a great way to generate market-crushing returns over time.

1(Source: Ycharts)


Well, right now few stocks are more hated than GE, which has seen shares plunge 76% in the past 18 months from its mid-2016 highs. The company now trades at levels not seen since the darkest days of the Financial crisis.

Given GE’s storied 126 year history, some deep value investors might be tempted to buy this stock purely as a “cigar butt” investment. However, I strongly caution against that, because while GE is certainly cheap now, I fear it might fall much lower. In fact, there are three reasons why I won’t touch GE…at any price and recommend you do the same.

To quote the Oracle of Omaha once more “it’s better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

In today’s market there are plenty of great quality companies trading at not just fair prices, but firesale valuations. Meanwhile, GE isn’t close to being a “fair” company but is a toxic collection of shrinking assets and a mountain of liabilities that might potentially decline much lower.  

9 "Must Own" Growth Stocks For 2019

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from!

Top Stories on

NASDAQ: TSLA | Tesla, Inc. News, Ratings, and Charts

Tesla’s (TSLA) new Autopilot feature poses a “serious” safety risk for drivers, says Consumer Reports

The autopilot would sometimes cut off other vehicles or make illegal passes, the magazine said.
NYSE: LB | L Brands, Inc. News, Ratings, and Charts

L Brands Inc. (LB) reports earnings, shares surge 13% after-hours

Shares of L Brands, the owner of Victoria’s Secret and Bath & Body Works, rose nearly 11% in aftermarket trading Wednesday
NASDAQ: NTAP | NetApp, Inc. News, Ratings, and Charts

NetApp Inc. (NTAP) reports Q4 earnings, miss estimates

NetApp Inc. shares dropped more than 5% in late trading Wednesday.
: bynd | Beyond Meat, Inc. - Common stock News, Ratings, and Charts

Beyond's (BYND) stock climbs after Barclays says alternative meat market could be worth $140 billion

The market for plant-based or lab-made meat could climb to $140 billion in the next 10 years.
NASDAQ: AAPL | Apple Inc. News, Ratings, and Charts

If China bans Apple (AAPL) products, earnings could be cut 29%

Goldman rates the stock as neutral and cut its price target to $178 from $184.

Read More Stories