GE's Capital 'Permanently Impaired' by M&A Pattern, First Eagle Says

The video discusses General Electric's (GE) recent sale of a business unit to Advent for $3.25 billion and questions whether GE is a value stock. The speaker explains why they have not invested in GE, citing poor capital allocation decisions, such as buying high and selling low, which have weakened GE's financial position. Despite low stock prices, these issues have deterred investment due to the permanent impairment of capital and a weakened balance sheet.

What issues has GE faced from a capital allocation standpoint?

Why has the low price of GE stock not been a sufficient catalyst for investment?