Consequently, Warren Buffett has evolved from the traditional Ben Graham "cigar butt" value investing strategy into a GARP (growth at a reasonable price) approach.
Perhaps this deviation from the Ben Graham traditional value investing concepts might partially explain the recent selling of General Electric ( GE ) and the subsequent purchase of Synchrony Financial ( SYF ).
In reading various articles (and the accompanying comment threads) on General Electric, I have encountered what I consider numerous misconceptions and unsubstantiated opinions about the company and its historical performance.
Of course, I also offer the following analysis of General Electric and Synchrony Financial in order to possibly illustrate the logic behind Warren Buffett's (most likely his associates) recent transactions on these two companies.
Additionally, Synchrony Financial (previously a division spun out of GE Capital) might also appeal to dividend growth investors desirous of a fairly valued total return opportunity.
- Warren Buffett Took a Stake in This Company and Its Value Soared $1 Billion ...Fortune
- Warren Buffett cashes out on GE, cashing in on crisis loanBusiness Standard
- Giving Credit to Card Issuer Synchrony FinancialBarron's
- Financial stock surges after Warren Buffett adds it to his big banking betCNBC
- Corrections & AmplificationsWall Street Journal (subscription)
- Buffett dumps his entire stake in GEEconomic Times
- GE Sale Is the Standout in Berkshire's PortfolioMorningstar.com
- Buffett dumps GE, keeps the big banks. Take note.BizNews
- 3 Warren Buffett Stocks for RetireesMotley Fool