Thursday, March 5, 2009

GE: "Hey guys – you can make a much better investment than Warren Buffett"

Hokey Smoke Bullwinkle!*
Bronte Capital has been on a "I got blisters on my fingers" posting rampage focusing on GE. Right now they are THE blog for all things GE. I'll link to some of their posts after the headline story:
Warren purchased some GE converts a while ago. Got what looked like a sweet deal at the time – a big yield and a nice conversion.

With where GE and GE debt is trading now you can – by buying debt and equity – produce a hybrid instrument that is (a) senior to Warren, (b) has a higher yield than Warren and (c) has better effective conversion terms than Warren.

Warren has stuffed up before. He purchased Irish banks last year. He purchased oil companies when the oil price was high.

But GE – wow. Maybe his ability to analyse it is no better than any of ours.
For those of you too young to remember, Rocky actually said
"Hokey Smoke" as a lead-in to some commercials.
Advertisers weren't too thrilled.
To make nice Rocky started saying

"And now, here's something we hope you'll really like."
"This is what I really call a message."

Before we get to the treasure-trove from Nature, a few more R & B quotes:

Rocky: Do you know what an A-bomb is?
Bullwinkle: Certainly. A bomb is what some people call our show.
Rocky: I don't think that's very funny.
Bullwinkle: Neither do they apparently.

Bullwinkle: Humble, that's me... Mr. Modesty.
When it comes to humility, I'm the greatest.

Bullwinkle: You just leave that to my pal. He's the brains of the outfit.
General: What does that make you ?
Bullwinkle: What else? An executive..