Warren Buffett Buy Preferred Stocks, not Common Stocks, Why

Warren Buffett company ,Berkshire Hathaway Inc, bought GE stocks and Goldman Sachs stocks, but they are not common stocks, but preferred stocks.

Why did Warren Buffett buy preferred stocks instead of common stocks ?

It's because preferred stocks have two main benefits over common stocks:

• preferred stock investors will get dividends earlier than common stock investors.
• preferred stock investors will get company's assets before common stock investors if the company goes bankrupt.

So if General Electric and Goldman Sachs pay dividends, Warren Buffett will get them first and if General Electric and Goldman Sachs go bankrupt Warren Buffett will also get the assets first. A good investment decision by Warren Buffett, isn't it ? http://investinginstock.blogspot.com/

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