Here is Fleck making the same point that I made (that buying preferred stock is not a vote of confidence in the common stock):Also in the misconception department, folks have heralded Warren Buffett's investment in General Electric (GE, news, msgs), similar to the one he made in Goldman Sachs (GS, news, msgs), as something akin to a vote of confidence. It's actually quite the opposite.What he's doing is making the most senior equity investment that he can via preferred stock, and getting paid quite a large coupon to do so, with call options thrown in. Buying the common stock would be a vote of confidence. This is an investment you make when you're still worried about lots of damage yet to play out.http://articles.moneycentral.msn.com/Investing/ContrarianChr...Peter
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