General Electric Keeps Selling Pieces Of GE Capital

One of the hard parts about studying companies is recognizing how singular transactions can change the risks associated with the business even though the outward appearance remains the same. It is hard recognizing in real time that the General Re acquisition began Berkshire Hathaway’s shift from relying on stock portfolio dividends towards relying on sourced profits from operating companies. It is hard recognizing in real time that Harley Davidson had grown its financing empire to such a point that more money came from the financing on customers’ motorcycles than came from the actual sales of motorcycles.

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