Mario Gabelli just bought 40 million dollars worth of GE Stock.
In the short interview Gabelli identifies these reasons for investing now:
Wonderful management in the engine business
Accounting issue not material relative to what CEO Flannery will be doing
Baker Hughes General Electric (BGHE) can be fully spun off
Powerful business remaining
Gabelli furthermore said he expects General Electric has things sorted out in two years and the stock will be in the low twenties. He doesn’t care about the dividend cut.
As I said in an earlier post. GE is a bargain right now. If you want to be wealthy, do what wealthy people do. Not what poor people do. Poor people panic and sell at a cheap price. Wealthy people buy at a low price and then with patience sell at a higher price.