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Warren Buffett Dumps GE Stake to Invest in a Lender With GE Roots

Billionaire investor Warren Buffett shed the last of a stake in General Electric Co. (GE) that he acquired during the 2008 financial crisis, according to a regulatory filing on Monday, Aug. 14, while funneling an even larger amount of cash into a credit-card lender that was once part of the manufacturing conglomerate.

The Berkshire Hathaway CEO's stake of more than 10 million GE shares was valued at $315.4 million at the end of March, according to the last regulatory filing that showed the holding. It was the remainder of a $3 billion investment in preferred stock and warrants from October 2008, a time at the height of the financial crisis when a key source of funding for GE's then-sprawling lending business was threatened because of frozen credit markets.

The Boston-based conglomerate redeemed the preferred stock for more than $4.1 billion, including dividends, in late 2011, according to a filing. Buffet reached an agreement with the company two years later to take about 10.7 million...


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