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.