General Electric would be an ‘ideal Warren Buffett investment,’ RBC says

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  • RBC Capital Markets says Warren Buffett may invest in General Electric, but could extract a high price for his involvement.
  • “In many ways, GE’s current situation fits the profile of an ideal Warren Buffett investment,” the firm’s analyst writes

Warren Buffett may come to the rescue of General Electric once again, according to one Wall Street firm.

RBC Capital Markets analyzed whether it made sense for Buffett to invest in GE at these levels.

General Electric’s stock rose 4.3 percent Tuesday amid unsubstantiated speculation that the Oracle of Omaha was buying shares of the beleaguered industrial conglomerate.

The company’s shares have significantly underperformed the market. Its stock has declined 55 percent in the past 12 months through Tuesday versus the S&P 500’s 11 percent return.

“Berkshire Hathaway has a history of investing in storied businesses struggling at steep valuation dislocations. In many ways, GE’s current situation fits the…

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