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Warren Buffett’s 10 Best Investments For 2011

General Electric Co.

GE has more implied upside than most conglomerates to consensus targets. Buffett’s 7.77 million share stake is also grossly understated because he did a large preferred financing when the market was in meltdown-mode. At $16.20, GE has an implied upside of $26.5% to the $20.50 price target. GE is still at the beginning stages of a turnaround with a higher dividend yield indicated around 3.0 percent now and share buybacks coming back on line. GE also has the most room for a scaling down of much of its financial operations, its current media partial divesting of NBC Universal and potential asset sales and spin-offs ahead. The company continues to focus on growth areas such as health care, energy, alternative energy, and engines. CEO Jeff Immelt is still making good on his forecast from our exclusive interview earlier in the year of making selective acquisitions. That $20.50 objective target is also above the 52-week trading range of $13.75 to $19.70. This may actually be an under-weighted investment for Berkshire Hathaway.

(AP Photo/Gene J. Puskar)

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