Preferred Stock Quotes & Sayings

A recent Economist article on dialysis perfectly illustrates the inflationary impact of cost-plus pricing. Since U.S. clinics are paid on a cost-plus basis, they prefer to use expensive drugs rather than cheaper ones. In fact, many appear to order drugs in units that exceed what a standard dosage requires because they can charge the government for the wastage. Quoting a stock research firm, the article noted that many clinics preferred an injected drug with a price of $4,100 a year over the identical drug in oral form, priced at only $450 a year. Not surprisingly, the manufacturer of the oral drug responded by increasing its price above that of the injected version to make it more competitive! — David Goldhill

Further strengthenings of the self-centered instinct for survival recruit even greater numbers of people into some sort of ring of fellowship (church or gender, red state or blue) by populating the terra incognita outside the ring with enough barbarians to verify the existence of a civilization within
to define the preferred stock by what, as all good people agree, it decidedly is not. — Lewis H. Lapham

It takes 150 years to build an investment bank and only five minutes to convince you to sell me preferred stock in it at a 10% interest rate. — Warren Buffett

In many cases, the Treasury will get preferred or convertible preferred stock for the money it gives to banks. These shares typically don't have voting rights, possibly to give more of a hands-off appearance to the government. — Jerry A. Webman

Making money from enforcing patents is no more wrong than investing in preferred stock. — Nathan Myhrvold

Financing is an art form. One of the challenges is how to correctly finance a company. In certain periods of time, more covenants need to be put into deals. You have to be sure the company has the right covenant -- to allow it the freedom to grow, but also to insure the integrity of the credit. Sometimes a company should issue convertible bonds instead of straight bonds. Sometimes it should issue preferred stock. Each company and each financing is different, and the process can't be imitative. — Michael Milken

I don't think it would be crazy to have a model or an entity model on the Reconstruction Finance Corp. That goes back to 1932, although it was really implemented in '33 under Jesse Jones, and it invested in mostly banks initially and preferred stock and that sort of thing. — Howard Warren Buffett