Jaunting Jesters
September 4, 1998

Jerry Chester Writes to General Electric

Mr. Jack Welch, President
General Electric Company
3135 Easton Turnpike
Fairfield, CT 06431

Dear Mr. Welch,

I am an individual investor. In the last three years, my portfolio has grown at an annual rate of nearly 8%, which is much better than I would have got in a regular passbook savings account, so I think it's fairly clear that I "know what I'm doing" when it comes to handling my money. I am currently considering a purchase of 37 shares of General Electric, an investment amounting to more than $3000, which, as a sum of money, is enough, in my opinion, to impress even a person of your accomplishments.

Why General Electric? I believe in investing in companies that have shown that they know what they are doing. Your light bulbs are the best that money can buy, and I would not think of trusting my home lighting to any other light bulb product in the world. I find that the light bulbs of your competitors (I won't name them, but you know who they are) simply do not produce the same high quality of light that I get from GE bulbs. Over time, those "second-rate" bulbs begin to impede my infrared vision, and eventually that stress causes me to suffer from slight headaches and mild insomnia. GE bulbs don't do that!

Last fall the light bulb in my living room finally burnt out after years of great service -- it was one of yours, but as I'm sure you know, no light bulb lasts forever, and I certainly don't blame the General Electric Company because it burned out. That light bulb gave me much more service than I could have ever expected for the paltry $1.50 I paid for it, another reason I love your products!

Unfortunately, when I went to my local supermarket to buy a replacement, can you believe it? They were completely sold out of General Electric bulbs. Of course, I could have purchased another brand, but I wouldn't hear of it, because General Electric bulbs, for the reasons mentioned above, are the only ones for me. Fortunately, thanks to my hobby in amateur surveillance, I have a pair of "night-vision" goggles, and they served me well enough to see me through the several days until the store was again stocked with your bulbs. It seems that so many other people think just like me that the stores can't keep GE bulbs on the shelves!

Anyway, you can see why I'm sold on General Electric as a possible investment. But one thing troubles me. I noticed in my research that in addition to light bulbs, General Electric also makes jet engines. I'm sure you'll understand my reluctance to put my hard-won dollars into a company that doesn't seem to be "sticking to it's knitting." Is this just a "side-light" for GE, or is it something I should worry about?

Thanks,
Jerry Chester