Last week I blogged about Warren Buffett’s purchase of preferred stock in Goldman Sachs. Today it was announced that Berkshire Hathaway (the investment firm that Buffett chairs) has reached an agreement to purchase $3 billion in preferred stock in GE.
Again I say, if Warren Buffett is jumping in now we have to be near the bottom of this mess. Who knows how long it will take us to get out but I take comfort in the fact that Buffett doesn’t believe it will all collapse.