Warren Buffett has made some interesting changes!
Berkshire Hathaway and Warren Buffett seem to be making a change with their investment strategy!!
See the article at Bloomberg.com for further enlightenment!
Basically, looks like they have moved OUT of consumer durables (Johnson & Johnson, Proctor & Gamble) and into debt and preferred shares of GREAT companies that "need a *little* help" - my words, not theirs. Looks like he is receiving 10% to 12% on the debt and preferred shares - most equity (stocks) can not come close!!
Also note that debt and preferred shares are paid FIRST in bankruptcy situations - common shareholders get little, if anything, once a company is liquidated! (General Electric and Goldman Sachs are two of the companies Warren has invested in recently.)
See the article at Bloomberg.com for further enlightenment!
Basically, looks like they have moved OUT of consumer durables (Johnson & Johnson, Proctor & Gamble) and into debt and preferred shares of GREAT companies that "need a *little* help" - my words, not theirs. Looks like he is receiving 10% to 12% on the debt and preferred shares - most equity (stocks) can not come close!!
Also note that debt and preferred shares are paid FIRST in bankruptcy situations - common shareholders get little, if anything, once a company is liquidated! (General Electric and Goldman Sachs are two of the companies Warren has invested in recently.)

Comments