General Electric Company Reports Solid Earnings and Planned IPO

Revenue and profits were up for General Electric in the second quarter, but an IPO of its credit card unit is grabbing most of the attention.

Jul 18, 2014 at 11:51AM

General Electric Company (NYSE:GE) reported a strong earnings for the second quarter this morning and shared plans for an IPO of its credit card unit.

Overall, revenue was up 3% to $37.2 billion on the back of strong power & water and oil & gas revenue, up 10% and 20%, respectively. CEO Jeff Immelt has spent billions of dollars increasing exposure to energy markets, and those bets are beginning to pay off. Segment profit was up 4% to $5.9 billion, and operating earnings per share were up 8% to $0.39, hitting Wall Street's estimate.  

The performance of power and energy units is important because Immelt is trying to reduce GE's exposure to financials, as demonstrated by the planned IPO of the company's credit card unit. GE plans to offer 125 million shares of the spinoff called Synchrony Financial for $23 to $26 per share, although it will keep about a $17 billion stake.  

Increasing GE's exposure to industrial markets versus financials appears to be the right move, especially when you consider the growth of domestic energy in recent years. The turbine business, which is benefiting from an increase in aircraft orders, is also doing well at the moment. For investors looking for a steady company with a solid dividend, GE is one of the best on the market.

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Travis Hoium manages an account that owns shares of General Electric Company. The Motley Fool owns shares of General Electric Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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