Once upon a time, General Electric Company (NYSE:GE) was bailed out by Warren Buffett.
The billionaire investor poured around $3 billion into the industrial conglomerate back in 2008 at the height of the financial crisis, helping shore up GE’s cash position amid the implosion of its financial unit, GE Capital. Now, nearly ten years later, Buffett has given up on the company. CNN Money has more details:
Buffett’s investment company, Berkshire Hathaway, dropped its remaining 10.6 million shares of General Electric sometime in the second quarter, according to a regulatory filing. As of June, Buffett’s investment had been worth $315 million.
The timing of the sale was pretty solid. Those 10.6 million shares would have been worth $46 million less today than three months ago.
After a solid post-financial crisis recovery, GE shares have performed terribly in recent years. The company has struggled under crushing pension obligations, underperformance in its energy unit, and heightened competition in the rapidly-changing technology space.
In the end, Buffett generated around a 40% return on his GE investment, not including sizable dividends. If he’d decided to sell sooner, however, it could have been a much larger profit.
General Electric Company shares rose $0.03 (+0.22%) in premarket trading Wednesday. Year-to-date, GE has declined -22.34%, versus a -1.95% rise in the benchmark S&P 500 index during the same period.
Try StockNews.com Premium Today!
Get access to our daily newsletters, Best Stocks List, POWR Ratings, and much more!
Free for 14 days -- no credit card required!