A couple years ago, as you may recall, the corporate world was developing some cracks. Into the breach stepped Berkshire Hathaway
He's also profiting handsomely from his altruism. Last month, General Electric pledged to repay Berkshire in full, handing the Oracle of Omaha a $1.2 billion profit on his $3 billion investment -- but not for long.
No sooner did GE promise to make good on its loan than management let slip how it's going to make the money back. Last week, GE announced it's building a new locomotive factory in Fort Worth, Texas, home to the headquarters of none other than Berkshire subsidiary Burlington Northern Santa Fe. Logically, Buffett's Burlington will be GE's first stop when the new factory starts churning out trains. But the Oracle won't be GE's only customer. Texas is home to more railroad miles than any other state in the union, and has another major operator in the form of Union Pacific
GE's refocus on manufacturing is real and underway. Pretty soon, it won't be just Buffett cutting GE checks. And this time, GE won't have to send the money back with interest.
Keep tabs on GE's corporate turnaround story. Add the stock to your Watchlist.
Fool contributor Rich Smith does not own shares of any company named above. The Motley Fool owns shares of Berkshire Hathaway. Motley Fool newsletter services have recommended Berkshire Hathaway and USG. 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.