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Buffett Says He Was Staggered by GE’s ‘Big Time’ Finance Lapses

  • GE hasn’t approached Berkshire CEO about big divestitures
  • Buffett says accounting at GE has ‘not been a model’
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Key Takeaways From Warren Buffett's Shareholder Letter

Billionaire investor Warren Buffett said he was “staggered” by the size of the charge General Electric Co. took earlier this year tied to an old insurance portfolio.

“Clearly there were mistakes made, and they made mistakes in long-term care,” Buffett, the chairman and chief executive officer of Berkshire Hathaway Inc., said Monday in an interview with CNBC. “The accounting at GE has not been a model at all in recent years. But you can make mistakes in something like insurance reserving big time, and long-term care has probably been the biggest single element in mis-reserving in insurance throughout the industry.”