Merely Human

GE gets downgraded to AA+ (vs. AAA which allowed it to borrow money for as cheap as the Federal Government) and the stock price goes up. Explain that? Well, clearly the market had already factored in the downgrade. Since I bought GE recently, it has cut the dividend and got it's rating lowered. Bad signs, right?

I don't think so. I think it reflects a pragmatic realism and that the company has the power and means to make adjustments in trying times. I like how Immelt bought up more shares and forsook his bonus this year. It shows character. I also like how Buffett bought stock in the company. His logic - better to overpay for a good company than underpay for a bad or mediocre company. In the long term, this makes sense to me.