Is General Electric Stock a Buy?
There are always trade-offs when you invest, particularly if you venture into a turnaround situation like General Electric (NYSE: GE). Sure, the recovery potential could be huge, but there's always the chance that the company fails to pull out of the rut in which it finds itself. And with GE there are a lot of trouble spots to fix. Here's what you need to know before you buy General Electric stock.
The problems at General Electric started before the 2007-to-2009 financial-led recession. Prior to that deep economic downturn, management, under Jack Welch, allowed the company's finance division to expand well beyond its original purpose of helping customers buy GE's industrial products. By the time the downturn hit, GE had its fingers in everything from insurance to mortgages.
Image source: Getty Images.
Source Fool.com
