One of the complaints people made about Warren Buffett’s investments in financial companies last year was that regular investors weren’t able to secure similar terms for their own portfolios. In 2008, Buffett invested in companies like Goldman Sachs and General Electric receiving preferred stock that pays a dividend of 10% and warrants to purchase common stock at a set price.
Well those people should take a second look. Right now, regular investors can secure terms even better than the Oracle of Omaha. GE common stock currently trades at a 50% discount to the strike price on Buffett’s warrants AND currently pays a dividend yield significantly greater than 10% (this may be reduced in the near future, however, to help maintain GE’s AAA credit rating).
Instead of taking advantage of the opportunity, however, the same folks who criticized his superior terms are now calling Warren an idiot for overpaying. You just can’t please some people.