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Buffett Grabs $3B Chunk of GE

Shrewd market player aiming for windfall after chaos clears

By Peter Fearon, Newser Staff

Posted Oct 2, 2008 3:59 AM CDT

(Newser) – Mega-pockets investor Warren Buffett is sinking $3 billion into General Electric, whose share prices have slumped a third amid the financial chaos on Wall Street, Reuters reports. Buffet, 78, negotiated a 10% dividend, which could generate $300 million income a year. The move comes a week after he invested $5 billion in Goldman Sachs.

Buffet plans to reap big profits once the market recovers from what he calls an "economic Pearl Harbor." What Buffett has been waiting for is finally happening: "a period of sufficient market distress when he can negotiate terrific financial terms," said an analyst. "He has been waiting for this for 10 years."

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Billionaire investor Warren Buffett is sinking $3 billion in beleaguered General Electric. (AP Photo/Nati Harnik, FILE)

General Electric's stock has lost a third of its value during the Wall Street meltdown. (Getty Images)

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General Electric is the backbone of American industry. They're going to be around in five or 100 years from now and, if you buy at the right time, you'll probably make some money." - Investor Warren Buffett

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Buffett Grabs $3B Chunk of GE