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The stock of <keyword id="19896380" type="General" weightage="20" keywordseo="Reliance-Industries" source="keywords">Reliance Industries</keyword> Ltd climbed nearly 3 per cent during the late afternoon trade on Thursday following the announcement that the company's board will consider issuing 1:1 bonus shares on September 5. Shares of the firm jumped 2.63 per cent to Rs 3,074.80 on the BSE as soon as the announcement came in. At the NSE, the bellwether stock climbed 2.58 per cent to Rs 3,074. The company's market valuation also surged Rs 42,399.24 crore to Rs 20,60,461.42 crore. <keyword id="10926" type="General" weightage="20" keywordseo="Reliance" source="Orion">Reliance</keyword>, the nation's most valuable company, had last issued bonus shares in September 2017. "A meeting of the Board of Directors of the company is scheduled to be held on Thursday, September 5, 2024, to consider and recommend to the shareholders for their approval, issue of bonus shares in the ratio of 1:1 to the equity shareholders of the company by capitalisation of reserves," the firm said in the stock exchange filing. Prior to the 1:1 bonus issue in 2017, Reliance had in 2009 issued 1:1 bonus share.

Reliance Industries valuation jumps by Rs 42,399 crore following 1:1 bonus shares consideration announcement

<keyword id="19896380" type="General" weightage="20" keywordseo="Reliance-Industries" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Industries" meta.hostid="261" meta.entityid="Reliance Industries">Reliance Industries</keyword>, under the leadership of <keyword id="19916798" type="General" weightage="20" keywordseo="Mukesh-Ambani" source="keywords">Mukesh Ambani</keyword>, showcased its vision for the future during the company’s Annual General Meeting (AGM) that was held today (August 29). During the AGM, <keyword id="19936674" type="General" weightage="20" keywordseo="reliance" source="keywords">Reliance</keyword> laid out ambitious plans that span across its diverse businesses. The conglomerate, which has interests ranging from oil to telecom to retail, is positioning itself as a key player in India’s growth story, with a particular focus on <keyword id="20239522" type="General" weightage="20" keywordseo="technological-innovation" source="keywords">technological innovation</keyword>, energy security, and retail expansion. <h2>Not chasing short-term profits</h2><keyword id="19898589" type="General" weightage="20" keywordseo="ambani" source="keywords">Ambani</keyword>, during his speech, said that Reliance is not merely chasing short-term profits but is dedicated to creating long-term wealth for the nation. He reiterated the company’s commitment to providing high-quality products and services that enhance the lives of Indian consumers. The chairman announced that the company’s board will consider issuing bonus shares on September 5, further rewarding shareholders as Reliance continues to grow. <h2>Transforming into a deep-tech company</h2>A major theme of the AGM this year was Reliance’s transformation into a deep tech company, with advanced manufacturing capabilities at its core. Ambani described this shift as essential to securing a place in the global top-30 companies in the near future. He highlighted the company’s strategic adoption of artificial intelligence (AI), calling it one of the most transformative events in human history. AI, he noted, opens up new avenues to address complex problems, making Reliance a net producer of technology. Reliance has been making significant strides in R&amp;D, with over ₹3,643 crore invested in FY24 alone, taking the total research expenditure to over ₹11,000 crore in the last four years. This investment is driving innovations in various areas, including bio-energy, solar power, green energy, and high-value chemicals. The company has also been active in digital research, filing patents in 6G, 5G, AI, and IoT, among others. Ambani assured that this tech-driven transformation would propel Reliance into a new phase of hyper-growth, multiplying its value in the coming years. <h2><keyword id="20337020" type="General" weightage="20" keywordseo="retail-business" source="keywords">Retail business</keyword> to double</h2>In addition to technological advancements, Reliance Retail, the company’s retail arm, is set to double its business in the next three to four years. Isha Ambani, Director of Reliance Retail, shared that the retail segment recorded a gross revenue of ₹3.06 lakh crore for the financial year ending March 31, 2024, marking a 17.8% growth over the previous year. The retail business has rapidly expanded, with Reliance opening 1,840 new stores in the past year, bringing the total to 18,836 stores across 79 million square feet of retail space. This growth has positioned Reliance Retail among the top-5 global retailers in terms of store count and among the top-10 in market capitalization globally. Isha Ambani emphasised that much of this growth is driven by a focus on smaller towns, where two-thirds of the new stores have been opened. Reliance Retail is also focused on creating high-quality, affordable products through its Consumer Brands business, which has seen the re-launch of popular brands like Campa, Lotus Chocolates, and Sosyo. Mukesh Ambani concluded by underscoring Reliance’s mission to provide energy security to India while also contributing to a cleaner and greener world. As the global landscape becomes increasingly uncertain, he expressed confidence in India’s role as a key growth engine in the global economy. The International Monetary Fund (IMF) projects that India will become the world’s third-largest economy by 2027, surpassing Japan and Germany. Ambani affirmed that Reliance will continue to be a driving force in India’s march toward becoming a developed nation.

Reliance AGM 2024: Company aims to double retail business, Mukesh Ambani says not pursuing short-term profit

<ul><li>The company had seen its IPO being oversubscribed by 159.33 times the offer value.</li><li><keyword id="5030468" type="UNKNOWN" weightage="20" keywordseo="EaseMyTrip">EaseMyTrip</keyword>’s IPO comes at a time when the fears of another lockdown are surging in the country, which could potentially affect travel.</li><li>However, ahead of its IPO, EaseMyTrip seemed optimistic about the travel industry.</li></ul>Easy Trip Planners Ltd, the parent company of online travel aggregator platform EaseMyTrip, which made its debut in the stock market today, saw its share price list at ₹212.25 at 9.50 am, 13.5% higher than the IPO issued price of ₹186-187 per share. However, within minutes of trading the share price fell to ₹204 at 10.13 am. Since its listing, the company’s market value rose to ₹2,305 crore. In the grey market, the shares of the company were trading at ₹160-165, as per <a href="https://www.livemint.com/market/ipo/easy-trip-planners-ipo-grey-market-premium-listing-gains-allocation-dates-in-10-points-11615094894205.html">reports.</a> However, the grey market is not an official measure of the market premium. The company had seen its IPO being oversubscribed by 159.33 times the offer value, with its QIB portion being subscribed 78 times, HNI 384.26 times and retail 70.78 times. EaseMyTrip’s IPO comes at a time when the fears of another lockdown are surging in the country, which could potentially affect travel. With the rising number of COVID-19 cases, several states have issued advisory while many cities are now subject to lockdowns or night curfews. However, ahead of its IPO, EaseMyTrip seemed optimistic about the travel industry. “In our third quarter of 2020, we have already recovered 70% of where we were during the same period last year,” Prashant Pitti, director at Easy Trip Planners (the parent company of EMT) told Business Insider in an interview. The company is an exception among a large pool of internet companies, which have tried to get listed – EaseMyTrip has bootstrapped its way to the public markets. Founded in 2008, the company is India’s second largest travel aggregator. EMT claims to have achieved profitability and calls itself “the only profitable company among key OTAs (online travel aggregators) in India”. According to a CRISIL report, as of FY20, EMT had a market share of 5% in India. However, the company believes that it would have gained market share in the last year. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/delhi-high-court-brings-up-civil-prison-for-violation-directs-future-group-to-recall-approvals-granted-to-future-retail-reliance-deal/articleshow/81570521.cms">Kishore Biyani vs Amazon – Delhi High Court brings up ‘civil prison’ for violation by Future Group, asks for recall of approvals granted to Future Retail-Reliance deal</a> <a href="https://www.businessinsider.in/business/corporates/news/accenture-announces-one-time-bonus-for-all-employees-as-the-tech-giant-sees-robust-revenue-growth/articleshow/81572548.cms">Accenture announces one-time bonus for all employees as the tech giant sees robust revenue growth</a>

EaseMyTrip lists at 13.5% premium – but gives up some of the listing gains soon after

<ul><li>Sensex gained 0.59% to 38,273.73 points during the initial trade.</li><li> The Nifty50 rose 0.59% to 11,314.00. </li><li>These are the top stocks that are buzzing the D-street today.</li><li><a href="https://www.businessinsider.in/">Check out the latest news and updates on Business Insider.</a> </li></ul>Despite the mixed cues from global markets, Indian stock market opened on a positive note on Tuesday with the BSE Sensex gaining 0.59% to 38,273.73 points during the initial trade. The Nifty rose 0.59% to 11,314.00. On the Nifty50 chart, Grasim, ONGC, Eicher, Titan and UPL Limited were among the top gainers - rising as much as 5%, whereas, Indusind Bank, Tech M, JSW Steel were among the top losers. These are the top stocks that are buzzing on D-street today. Tata Motors gained nearly 2% during the morning trade <div type="image" title="Tata Motors August 18" msid="77605551" hostid="261"></div> Tata Motors gained nearly 2% during the morning trade after the company refuted claims of stake sales in its premium car segment JLR. The company said there is adequate liquidity with the company to manage its operations and capital expenditure. Yes Bank gained 3% during the early trade hours <div type="image" title="yes Bank August 18" msid="77605556" hostid="261"></div> Yes Bank shares gained 3% during the early trade hours after the bank in a notice to shareholders for the AGM said that it is looking at trebling up stock options to be granted to senior executives to 22.5 crore, which can be seen as a move to retain talent. SBI Cards up over 2% <div type="image" title="SBI cards August 18" msid="77605595" hostid="261"></div> The share price of SBI Cards was trading up over 2% after the company said it raised ₹500 crore via 5.75% 2023 bonds. Bandhan Bank gains nearly 2% <div type="image" title="Bandhan Bank August 18" msid="77605647" hostid="261"></div> Bandhan Bank shares gained nearly 2% after the Reserve Bank of India (RBI) lifted the restriction regarding the remuneration of Bandhan Bank’s MD and CEO after the promoter shareholding was brought down to 40% in line with the central bank’s norms. In September 2018, the RBI, among other restrictions, said that the remuneration of the MD and CEO of Bandhan Bank stands frozen at the existing level in view of non-compliance with RBI’s licensing norms for new private sector banks. Britannia gains nearly 2% during early hours of trading <div type="image" title="Britannia shares August 18" msid="77605697" hostid="261"></div> FMCG major Britannia gained nearly 2% during early hours of trading after the company said its board has declared an interim dividend of ₹83 per share for the current fiscal and approved issue of bonus debentures. Reliance Industries trades 2% higher <div type="image" title="RIL August 18" msid="77605757" hostid="261"></div> Reliance Industries shares were trading 2% higher after the Supreme Court asked Centre to clarify its stand on why Reliance Jio, which is earning revenue by sharing Reliance Communication’s (RCom) spectrum be not asked to pay the AGR related dues to the government. The Supreme Court will continue hearings in the AGR case today. SEE ALSO:<a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-today-ril-sbi-cards-hal-manappuram-airtel-bandhan-bank-britannia/slidelist/77603872.cms" data-type="tilCustomLink"> Top stocks to watch today— RIL, SBI Cards, HAL, Manappuram, Airtel, Bandhan Bank and more</a> <a href="https://www.businessinsider.in/business/startups/news/oyo-byjus-investor-lightspeed-india-closes-its-third-fund-with-275-million/articleshow/77603896.cms" data-type="tilCustomLink">OYO, Byju's investor Lightspeed India closes its third fund with $275 million</a>

Top stock movers on Dalal Street today — Tata Motors, SBI Card, Bandhan Bank, RIL, Britannia

<ul><li><keyword id="1553175" type="COMPANY" weightage="20" keywordseo="Vodafone-Idea">Vodafone Idea</keyword> offered some 10,000 employees an average increment of 9% along with 97% bonus pay. </li><li>Airtel offered an average raise of 7.5% to nearly 16,000 employees this June. </li><li>Jio is expected to roll out increments in August this year, while the company offered 90% bonus to roughly 15,000 employees.</li></ul>In a relief to its employees, telecom service provider Vodafone Idea gave an average increment of 9% to 10,000 employees <a href="https://economictimes.indiatimes.com/jobs/hikes-at-vodafone-idea-a-sign-of-green-shoots/articleshow/70253649.cms?from=mdr">according to an ET report</a>. The telco also extended a 97% bonus pay, the compensation above the base salary. This is the first time in two years since the merger, that the employees have received a hike. While the top performing employees got a 17% raise in their annual compensation. The employees did not receive hikes in the last two years due to mounting losses. The telecom player might have missed one increment cycle but its increments are better than that of its rivals — Airtel and Jio. Airtel offered an average raise of 7.5% to nearly 16,000 employees in June, the same as last year. Jio is expected to give it hikes in August this year. The merger between Vodafone and Idea Cellular had shrunk the total employee base. Vodafone laid off over 100,000 employees, at the time of merger. <keyword id="6354504" type="DEFINITION" weightage="20" keywordseo="reliance-jio">Reliance Jio</keyword>’s entry and its deep discounts has disrupted the telecom market, stressing all its players and affecting their profits. It has also been eating into the subscriber market as well. Jio added nearly 16 million rural subscribers during the last quarter of 2018-19, according to the <a href="https://www.business-standard.com/article/companies/reliance-jio-gains-from-incumbents-loss-in-rural-india-says-trai-report-119071501546_1.html">Telecom Regulatory Authority of India (TRAI) Performance Indicator Report</a>. While Bharti Airtel and Vodafone Idea lost around 20 million and 13 million, respectively. Vodafone Idea shares rose by 2.97% to ₹12 in morning trade today. See also: <a href="https://www.businessinsider.in/the-fate-of-180000-bsnl-unpaid-employees-hangs-in-balance-as-fears-of-a-shutdown-loom-large/articleshow/69954923.cms">The fate of 180,000 BSNL unpaid employees hangs in balance as fears of a shutdown loom large</a> <a href="https://www.businessinsider.in/mukesh-ambanis-reliance-jio-collaborates-with-mark-zuckerbergs-facebook-to-launch-digital-literacy-program-in-india/articleshow/70066803.cms">Mukesh Ambani and Mark Zuckerberg join hands to target millions of India's first time internet users</a> <a href="https://www.businessinsider.in/5g-spectrum-auctions-might-have-a-buy-now-pay-later-scheme/articleshow/70190419.cms">5G spectrum auctions might have a ‘buy now pay later’ scheme</a>

Vodafone Idea offers salary hike to employees after two years

There is growing concerns amidst shareholders over <keyword id="6355199" type="CITY" weightage="80" keywordseo="Reliance-Industries">Reliance Industries</keyword>’ investment in ventures such as media and telecom, especially over its recent gesture to give loans to media firm NDTV. Shareholders at the recent annual general meeting in Mumbai demanded to know the rationale behind such <keyword id="6362476" type="ORGANIZATION" weightage="40" keywordseo="investments">investments</keyword> and loans, according to a Press Trust of India (PTI) report. RIL shares, once the darling of the stock market, have languished in recent years as production from the KG-D6 gas fields fell and the government became increasingly reluctant to increase the price of commercial gas. In the last one year, they have fallen 4.6% compared with the benchmark Sensex's 10.8% gain. Moneylife magazine has revealed details of the loan to NDTV in an article which points out that an RIL affiliated arm Viswapradhan Commercial Pvt Ltd gave a loan of Rs 350 crore to promoters of NDTV through convertible warrants in 2009. These warrants give the lender, (Reliance or the Ambani family) the power to convert at any time during the tenure of the loan or thereafter into equity shares of the NDTV holding company. The two partners planned to find a buyer for NDTV for 3-5 years. Since the sale has not fructified, NDTV is effectively owned by the <keyword id="3820" type="PERSON" weightage="100" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> company, the article concludes. The PTI reported that at the annual general meeting shareholders were upset with Reliance' dividend policy even as it continues to make these unrelated investments. Chairman Mukesh Ambani assured shareholders that the company would reward investors with a combination of dividend, bonus and buyback once it completes its ongoing investment cycle. 

	But shareholders continued to raise questions over return on shares and the company's investment decisions. Ambani chose not to reply to the questions from shareholders as is the practice at AGMs, stating that the company will answer shareholders through direct correspondence. 
 

	Some shareholders demanded that the next dividend payout should at least be 150%, while some demanded bonus debentures in the interim as the share prices of RIL continued to be low when it ideally should be priced at around Rs 5,000 a piece, PTI reported. 
 
 

	A Reliance Industries spokesperson did not reply to an email questionnaire on the issue. 
 Some RIL investors also expressed concerns over continuing losses of its media arm - 17 news channels under Network18 and 14 GEC channels, along with their e-commerce and publishing arms. PTI reported that an investor questioned the rationale behind the company giving an interest free loan of Rs 350 crore to <keyword id="201527" type="COMPANY" weightage="100" keywordseo="NDTV-Group">NDTV Group</keyword> even as it already has these many channels and also queried about the fate of this investment. 
	 
	(image credits: )

Ambani silent even as situation becomes tense over Reliance’s investment in media firms

<ul class="summary-list"><li>This post originally appeared in the Insider Today newsletter.</li></ul>Hello! Apple's Vision Pro has become the newest tech flex, but wearing it in public <a target="_blank" rel="noopener" href="https://www.businessinsider.com/apple-vision-pro-how-do-they-look-public-influencer-2024-2">isn't exactly what Apple had in mind</a>. But that hasn't stopped people from trying. If you're wondering what's inside the $3,500 virtual reality headset, a video shows just <a target="_blank" rel="noopener" href="https://www.businessinsider.com/what-apple-vision-pro-looks-like-inside-teardown-video-2024-2">how much tech is crammed into it</a>.In today's big story, we're looking at why investors are eyeing an <a target="_blank" href="https://markets.businessinsider.com/news/stocks/economy-stock-market-rally-federal-reserve-inflation-recession-soft-landing-2024-2">even better outcome for the market than a soft landing</a>.What's on deck:<ul><li>Markets: Gen Z is <a target="_blank" href="https://www.businessinsider.com/financial-influencers-gen-z-investing-tiktok-youtube-finance-money-content-2024-2">skirting professional advisors for TikTokers</a>.</li><li>Tech: The <a target="_blank" href="https://www.businessinsider.com/fintech-investors-investment-areas-ai-payroll-infrastructure-2024-1">startups focused on financial tech</a> that VCs are most excited about.</li><li>Business: Why Travis Kelce is teaming up with <a target="_blank" href="https://www.businessinsider.com/travis-kelce-experian-tv-commercials-nfl-taylor-swift-super-bowl-2024-2">one of the biggest credit bureaus in the US</a>.</li></ul>But first, not too cold, not too hot, but just right.If this was forwarded to you, <a target="_blank" href="https://www.businessinsider.com/subscription/newsletter/insider-today">sign up here.</a><h2>The big story</h2><h3>Market's sweet spot</h3><div type="image" title="Charging Bull Looking Through Torn Page of Financial Newspaper" height="3840" width="5760" msid="107465569" hostid="261" sizebytes="742582"></div>Forget about a soft landing, some market watchers want something just right.For months, investors hoped the Fed's tightening policy would culminate in a soft landing: lowering inflation while avoiding a full-blown recession.The US is nearly there. Most experts believe the Fed will stick the landing as a <a target="_blank" href="https://www.businessinsider.com/jobs-labor-market-unemployment-rate-wage-growth-january-economy-2024-2">stream of strong economic data</a> continues to pour in.But why settle for a soft landing when you can get it all? A so-called <a target="_blank" href="https://www.businessinsider.com/personal-finance/goldilocks-economy">Goldilocks economy</a> — where growth remains high while inflation and unemployment stay low — is a possibility <a target="_blank" href="https://markets.businessinsider.com/news/stocks/economy-stock-market-rally-federal-reserve-inflation-recession-soft-landing-2024-2">some market watchers are floating</a>, Business Insider's Matthew Fox writes.Cooling inflation and a strong jobs report means the Fed has the green light to get more aggressive with its rate cuts, Solita Marcelli, UBS's CIO for global wealth management in the Americas, wrote Monday. The result would be the S&amp;P 500 surging to 5,300 in 2024, finishing the year up 11%.The scenario would be a boon for small-cap companies, many of which have floating-rate debt that would benefit from a flurry of cuts, Marcelli said.<div type="image" title="US Federal Reserve Chair Jerome Powell" height="1392" width="2000" msid="107465572" hostid="261" sizebytes="174080"></div>A Goldilocks economy still hinges on the Fed cutting rates, which has proved fleeting for investors.Fed Chair Jerome Powell crushed investors' dreams of a March rate cut last week, a <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-news-today-fed-chair-powell-march-rate-cuts-2024-2">point he seemed to reiterate on "60 Minutes."</a> The chance of a March rate cut went from 50% last week to about 16% on Monday, according to the CME FedWatch Tool.Not to be deterred, the market still believes we'll see the cuts it's been dying for, and more than the central bank currently anticipates. It's banking on the Fed being wrong, but ultimately seeing the error of its ways and accelerating cuts later this year.The market has priced in <a target="_blank" href="https://markets.businessinsider.com/news/stocks/fed-first-interest-rate-cut-outlook-stock-market-bet-policy-2024-2">six rate cuts for the year</a> despite Powell already signaling the central bank was planning for just <a target="_blank" href="https://www.businessinsider.com/interest-rates-fed-pauses-increases-december-rate-cuts-powell-inflation-2023-12">three</a>. That suggests it foresees the Fed <a target="_blank" href="https://markets.businessinsider.com/news/stocks/fed-first-interest-rate-cut-outlook-stock-market-bet-policy-2024-2">making a "policy error,"</a> Bank of America analysts wrote in a note Friday.To be sure, it feels a bit like we're moving the goalposts.Powell has been unwavering in trying to snuff out any chance of inflation roaring back. Banks collapsed because they didn't manage their interest-rate risk, and that still didn't stop Powell from <a target="_blank" href="https://www.businessinsider.com/fed-raised-interest-rates-again-amid-calls-to-pause-svb-2023-3">raising rates another three times</a>.To suggest he'll take such an aggressive approach to cutting rates after being so cautious seems a bit optimistic.That's not to say there's no chance of the Fed exceeding its three-cut prediction this year. Harvard economist Kenneth Rogoff said last month the central bank could cut the rate 15 times… <a target="_blank" href="https://www.businessinsider.com/fed-rate-cuts-forecast-soft-landing-economy-recession-inflation-rogoff-2024-1">if a deep recession is triggered</a>.<h2>3 things in markets</h2><div type="image" title="Jensen Huang, CEO of Nvidia, reacts to a video at his keynote address at CES in Las Vegas, Nevada, U.S. January 7, 2018." height="2258" width="3500" msid="107465574" hostid="261" sizebytes="190552"></div>1. One of the hottest stocks in the market still has room to grow, Goldman says. Share prices of AI darling Nvidia have a potential 21% upside, according to Goldman Sachs. The bank is feeling bullish thanks to early evidence of AI monetization and talk of increased investment in AI by companies, <a target="_blank" href="https://markets.businessinsider.com/news/stocks/nvidia-stock-artificial-intelligence-q4-earnings-outlook-semiconductor-chips-nvda-2024-2">among other reasons</a>.2. How things could go wrong for the stock market. Despite being bullish on stocks, BofA equity strategist Savita Subramanian still outlined some big potential risks to investors. Weak demand and layoff news <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-bearish-outlook-record-rally-investing-advice-warning-bofa-2024-2">were some headwinds that gave her pause</a>.3. Gen Z is turning to influencers for help with its finances. A new survey found young people look to TikTok and YouTube over professional advisors for help with their money. A demand for long-form content and young people's distrust of traditional players <a target="_blank" href="https://www.businessinsider.com/financial-influencers-gen-z-investing-tiktok-youtube-finance-money-content-2024-2">has led to the trend</a>.<h2>3 things in tech</h2><div type="image" title="Photo illustration of a phone and charts." height="1276" width="1702" msid="107465706" hostid="261" sizebytes="158000"></div>1. Fintechs could still soar in 2024. While venture funding to financial-technology startups fell by 50% in 2023 from 2022, VCs still see a handful of bright spots. Investors said that <a target="_blank" href="https://www.businessinsider.com/fintech-investors-investment-areas-ai-payroll-infrastructure-2024-1">areas like generative AI and payroll providers</a> could take off this year.2. ChatGPT should be "much less lazy now," Sam Altman says. In a post to X, Altman said a new update would fix <a target="_blank" href="https://www.businessinsider.com/chatgpt-openai-sam-altman-chatbot-less-lazy-after-users-complain-2024-2">ChatGPT's refusal to complete some tasks</a>. Users had been complaining the bot was slacking off and sometimes even issuing sassy responses.3. A Salesforce exec suggested workers who didn't hit a training goal could see financial repercussions. The company set a 2023 goal for all employees to achieve the "Ranger" status on its training platform. A <a target="_blank" href="https://www.businessinsider.com/salesforce-exec-email-trailhead-goal-bonus-2024-2">leaked email showed the exec telling staff they better "get going"</a> if they want their stock grant and bonus.<h2>3 things in business</h2><div type="image" title="Photo collage featuring Travis Kelce, the tight end for the Kansas City Chiefs (87), along with a credit score range icon with an arrow on red." height="900" width="1200" msid="107465708" hostid="261" sizebytes="69518"></div>1. Travis Kelce wants you to check your credit score. The Kansas City Chiefs tight end has partnered with Experian on a new ad campaign encouraging people to check their credit scores. It's probably a <a target="_blank" href="https://www.businessinsider.com/travis-kelce-experian-tv-commercials-nfl-taylor-swift-super-bowl-2024-2">better deal for Experian than for consumers</a>.2. The US Treasury will send officials to China this week. The New York Times reported that an envoy of department officials is heading to China to help <a target="_blank" href="https://www.businessinsider.com/top-us-treasury-officials-delegations-travel-china-ease-economic-tensions-2024-2">iron out economic tensions</a> between the two countries.3. EVs just aren't working. A reliance upon high-priced, luxury EVs fell apart in recent months, and automakers are <a target="_blank" href="https://www.businessinsider.com/automakers-back-to-the-drawing-board-ev-plans-2024-2">going back to the drawing board</a>. And now it seems like hybrids are back in favor.<h2>In other news</h2><ul><li><a target="_blank" href="https://www.businessinsider.com/king-charles-diagnosed-with-cancer-buckingham-palace-confirms-2024-2">King Charles diagnosed with cancer shortly after undergoing a prostate procedure</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/tiktok-vs-umg-music-ban-indie-music-discovery-popular-songs-2024-2">Indie musicians are celebrating UMG's decision to pull its music off TikTok: 'It's our time to shine baby'</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/taylor-swift-celine-dion-controversy-backlash-explained-grammys-2024-2">Why fans think Taylor Swift snubbed Céline Dion at the 2024 Grammys</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/ukraine-wants-canada-83000-decommissioned-rockets-2024-2">Ukraine is so desperate for arms, it's itching to get its hands on Canada's 83,000 decommissioned rockets</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/snap-new-layoffs-hit-content-moderation-dei-roles-2024-2">Snap's new mass layoffs hit teams across tech, trust, and safety, and an internal analytics team aiding DEI efforts</a></li><li><a target="_blank" href="https://www.businessinsider.com/nomad-health-layoffs-employees-healthcare-2024-2">Exclusive: Healthcare staffing startup Nomad Health just cut more staff, its third layoff in a year</a>.</li><li><a target="_blank" rel="noopener" href="https://www.businessinsider.com/cosmetic-treatments-save-time-so-stripper-can-earn-more-2024-2">A stripper and escort who caters to Wall Street clients says she has invested more than $57K in cosmetic treatments</a>.</li></ul><h2>What's happening today</h2><ul><li>Today's earnings: Snap, Spotify, UBS, and other companies <a target="_blank" href="https://markets.businessinsider.com/earnings-calendar">are reporting today</a>.</li><li>The FAA Administrator will testify to the House Transportation subcommittee after January's Boeing 737 Max 9 blowout.</li></ul>The Insider Today team<a target="_blank" href="https://www.businessinsider.com/author/dan-defrancesco">Dan DeFrancesco</a>, deputy editor and anchor, in New York. <a target="_blank" href="https://www.businessinsider.com/author/hallam-bullock">Hallam Bullock</a>, editor, in London. <a target="_blank" href="https://www.businessinsider.com/author/jordan-parker-erb">Jordan Parker Erb</a>, editor, in New York.Get in touch<a target="_blank" rel="noopener" class="insider-today-blue-link" href="mailto:insidertoday@insider.com">insidertoday@insider.com</a>To read unlimited articles, <a target="_blank" rel="noopener" href="https://www.businessinsider.com/subscription">subscribe</a> to Business Insider.

A Goldilocks economy could be coming, but a key piece of the puzzle remains elusive

<ul><li>After a brief period, <keyword id="3820" type="General" weightage="80" keywordseo="mukesh-ambani" source="Orion">Mukesh Ambani</keyword> is back to being the <keyword id="405464" type="General" weightage="20" keywordseo="richest-indian" source="Orion">richest Indian</keyword>.</li><li>The Reliance Industries’ honcho has seen his company’s market capitalisation surge more than 25% in the last three months.</li><li>Mukesh <keyword id="10924" type="General" weightage="100" keywordseo="ambani" source="Orion">Ambani</keyword>’s rival, Gautam Adani, on the other hand, has seen his group companies’ value decline by over 16%.</li></ul>Mukesh Ambani is the richest Indian once again, beating his rival Gautam Adani after several weeks of being in the second position. In the last few months, Gautam Adani had been India’s richest man after a massive surge in Adani Group company stocks. Now, Mukesh Ambani is back to the No.1 position. Ambani regaining the top position is driven by a rebound in the Reliance Industries stock – which is up by more than 25% since early March. <div type="image" title="Reliance Industries 08_03_22 to 03_06_22." msid="91977061" hostid="261" caption="&amp;lt;p&amp;gt;Reliance Industries share price&amp;lt;/p&amp;gt;"></div> According to the Forbes rich list, Mukesh Ambani’s wealth stood at $104.4 billion, gaining $6.2 billion in the last one day. On the other hand, Gautam Adani’s wealth stood at $100.7 billion. According to Bloomberg Billionaires Index, Ambani’s wealth stood at $99.7 billion, while Gautam Adani’s stood at $98.7 billion. Adani now stands at the 9th place – <a href="https://www.businessinsider.in/business/news/gautam-adani-is-now-as-wealthy-as-bill-gates/articleshow/91115934.cms">a little over a month ago, he was tied with Bill Gates as the fourth richest person in the world</a>. Just a few days ago, Adani crashed out of the $100 billion club. Since his peak, Adani has lost nearly $25 billion in wealth, but he still has <a href="https://www.businessinsider.in/thelife/personalities/news/gautam-adani-crashes-out-of-the-100-billion-club-but-still-is-10x-richer-than-he-was-2-years-back/articleshow/91807766.cms">10 times more wealth</a> than what he had two years ago. <cmsannotation type="cmsannotation" annotationid="Mukesh Ambani added an average of $2 billion wealth per month in 2022" comment="subhead" text="Mukesh Ambani added an average of $2 billion wealth per month in 2022">Mukesh Ambani added an average of $2 billion wealth per month in 2022</cmsannotation> According to Forbes, Mukesh Ambani is the sixth richest person in the world, adding $10 billion to his wealth in the first five months of 2022. Born in Yemen, Ambani took over the reins of Reliance Industries from his father Dhirubhai Ambani in 2002, after the latter passed away. Since then, the share price of Reliance Industries has surged from ₹42 to ₹2,800 today, with several instances of bonus shares and stock splits during the period. Both Adani and Ambani run conglomerates with interests across multiple sectors within and outside India. Ambani's interests include energy, telecom, retail and media. He is also looking to expand his interests in high-end tech innovation that can transform both his consumer-facing businesses. Adani, on the other hand, has been strengthening his FMCG brands with a legacy in power, infrastructure - and has recently added cement and media to the many interests that he holds. SEE ALSO: <a href="https://www.businessinsider.in/business/news/mukesh-ambani-sets-sights-on-defence-showcases-made-in-india-software-for-aircraft-design/articleshow/91959787.cms">Mukesh Ambani sets sights on defence – showcases Made in India software for aircraft design</a> <a href="https://www.businessinsider.in/thelife/personalities/news/gautam-adani-crashes-out-of-the-100-billion-club-but-still-is-10x-richer-than-he-was-2-years-back/articleshow/91807766.cms">Gautam Adani crashes out of the $100 billion club, but still is 10x richer than he was 2 years back</a> <a href="https://www.businessinsider.in/business/news/gautam-adani-is-now-as-wealthy-as-bill-gates/articleshow/91115934.cms">Gautam Adani is now as wealthy as Bill Gates – rally in Adani group</a>

Mukesh Ambani gets his ‘richest Indian’ crown back with a wealth of $104.4 billion

<ul class="summary-list"><li>This post originally appeared in the Insider Today newsletter.</li></ul>Almost to the weekend! Changing phone chargers is already a massive headache, but now you have the bonus of <a href="https://www.businessinsider.com/using-the-wrong-charger-could-damage-ruin-your-iphone-2023-9">electrocuting your new iPhone 15</a> if you use the wrong USB-C plugin.Speaking of shocks, Citigroup announced a massive overhaul on Wednesday that'll <a href="https://www.businessinsider.com/citigroup-reorganization-layoffs-management-overhaul-reorganization-jane-fraser-stock-price-2023-9">reportedly lead to job cuts</a>. It's the latest example of the pressure big banks are under to keep their place atop Wall Street. More in today's big story.What's on deck: <ul><li>Markets: Why <a href="https://www.businessinsider.com/fire-movement-limitations-cons-early-retirees-back-to-work-2023-9">retiring early</a> isn't always as fun as it sounds.</li><li>Tech: Some founders are fed up with the <a href="https://www.businessinsider.com/startup-founders-are-bootstrapping-instead-of-raising-money-from-vcs-2023-9">"debilitating" influence</a> that comes with VC money.</li><li>Business: <a href="https://www.businessinsider.com/online-shopping-hidden-junk-fees-getting-worse-sneakier-prices-tickets-2023-9">Online shopping's</a> hidden fees are becoming an epidemic.</li></ul>But first, we're going to switch things up.If this was forwarded to you, <a href="https://www.businessinsider.com/subscription/newsletter/insider-today">sign up here.</a><a href="https://www.businessinsider.com/subscription/newsletter/insider-today"></a><a href="https://www.businessinsider.com/citigroup-reorganization-layoffs-management-overhaul-reorganization-jane-fraser-stock-price-2023-9"></a><div type="image" title="Citi logo" height="1333" width="1778" msid="103665795" hostid="261" sizebytes="204518"></div>The big story<h2>Citigroup shuffle</h2>Ready or not, changes are coming to Citigroup. The bank announced a massive overhaul Wednesday that'll reduce management layers and almost certainly lead to job cuts. Insider's Jennifer Sor <a href="https://www.businessinsider.com/citigroup-reorganization-layoffs-management-overhaul-reorganization-jane-fraser-stock-price-2023-9">has more on the reorg</a>, deemed by CEO Jane Fraser as the most consequential change to Citigroup in nearly 20 years. Citigroup is pitching the move as a way to simplify its structure. Case in point: Fraser said the changes eliminated 35 committees. Changes like these are bound to ruffle some feathers, but Fraser isn't bothered by it. The reorg will "make some of our people very uncomfortable," but the CEO said she's "absolutely fine with that." That might seem like a harsh stance, but understand the bank needs tough love. Citigroup's share price is down nearly 40% since Fraser took over as CEO in March 2021. To be fair, Fraser's tenure has been an uphill battle. She inherited plenty of headaches from her predecessor, Michael Corbat. That included the bank <a href="https://www.businessinsider.com/citibank-revlon-loan-900-million-mistake-payment-how-it-happened-2021-2">accidentally wiring $900 million</a>, which is the type of thing that's typically frowned upon in banking. But two-plus years later, problems persist. Before the announcement, the bank's share price was down almost 9% this year, trailing all of its fellow big bank peers in the US except Bank of America. Citi's overhaul represents how big banks are scrambling to stay on top of a financial world passing them by. When news of Citi's reorg broke, I immediately thought of <a href="https://www.businessinsider.com/latest-goldman-sachs-news-2019-5">Goldman Sachs</a>. The prestigious investment bank has also grabbed headlines for its <a href="https://www.businessinsider.com/goldman-sachs-restructuring-david-solomon-mark-nachmann-winners-2022-10">multiple reorgs</a> amid a failed push into <a href="https://www.businessinsider.com/goldman-sachs-investor-day-david-solomon-addresses-consumer-banking">consumer banking</a> under <a href="https://www.businessinsider.com/goldman-sachs-ceo-david-solomon-defends-himself-dj-cnbc-2023-9">CEO David Solomon</a>. Meanwhile, my colleague <a href="https://www.businessinsider.com/author/rebecca-ungarino">Rebecca Ungarino</a> pointed out that Wells Fargo has faced continued setbacks from a <a href="https://www.businessinsider.com/wells-fargo-scandal-bank-overdraft-late-fees-foreclosure-settlement-history-2022-12">slew of fines</a> over the years as <a href="https://www.businessinsider.com/latest-wells-fargo-news-hirings-layoffs">CEO Charlie Scharf</a> continues to work to right the ship. Even the big bank having the best year — <a href="https://www.businessinsider.com/jamie-dimon-jp-morgan-ceo-first-republic-bank-rescue-2023-3">JPMorgan</a> — isn't completely happy. CEO Jamie Dimon <a href="https://markets.businessinsider.com/news/stocks/jpmorgan-jamie-dimon-bank-stocks-fed-capital-rules-economic-outlook-2023-9">recently quipped</a> he "wouldn't be a big buyer of a bank" in reference to proposed regulations requiring big banks to <a href="https://www.businessinsider.com/big-banks-capital-requirements-regulation-basel-2023-6">keep more money on the sidelines.</a> But banks' retrenchment could just signal an opportunity for others to fill in the gaps. Whether it's <a href="https://www.businessinsider.com/most-promising-financial-startups-fintechs-2023">fintechs</a> or so-called <a href="https://www.businessinsider.com/private-credit-shadow-banking-silicon-valley-bank-collapse-lending-2023-3">shadow banks</a>, there's no shortage of players looking to offer services previously dominated by big banks. That could be a welcome change, but there are risks to moving those services outside the walls of a highly regulated institution. Sometimes, the devil you know is better than the one you don't.<a href="https://www.businessinsider.com/citigroup-reorganization-layoffs-management-overhaul-reorganization-jane-fraser-stock-price-2023-9">Read the full story. </a>3 things in marketsBefore the opening bell: US futures rise <a href="https://newsletter.businessinsider.com/click/32703884.1358088/aHR0cHM6Ly9tYXJrZXRzLmJ1c2luZXNzaW5zaWRlci5jb20vcHJlbWFya2V0P3V0bV9tZWRpdW09bmV3c2xldHRlciZ1dG1fc291cmNlPVNhaWx0aHJ1JnV0bV9jYW1wYWlnbj1JbnNpZGVyX1RvZGF5/63c964d0fd0e8ffc6308a4aeB0c0d0067" target="_blank" rel="noopener">early Thursday</a> after stocks <a href="https://newsletter.businessinsider.com/click/32703884.1358088/aHR0cHM6Ly9tYXJrZXRzLmJ1c2luZXNzaW5zaWRlci5jb20vbmV3cy9zdG9ja3Mvc3RvY2stbWFya2V0LW5ld3MtdG9kYXktaW5mbGF0aW9uLWF1Z3VzdC1jcGktZmVkLXJhdGUtaGlrZS0yMDIzLTk_dXRtX21lZGl1bT1uZXdzbGV0dGVyJnV0bV9zb3VyY2U9U2FpbHRocnUmdXRtX2NhbXBhaWduPUluc2lkZXJfVG9kYXk/63c964d0fd0e8ffc6308a4aeBcd67c613" target="_blank" rel="noopener">finished mixed</a> on Wednesday.<a href="https://www.businessinsider.com/us-inflation-economy-cpi-august-data-2023-9"></a><div type="image" title="older woman browsing Costco medicine aisle" height="750" width="1000" msid="103665797" hostid="261" sizebytes="141900"></div><ol><li>Inflation is sticking around. The <a href="https://www.businessinsider.com/us-inflation-economy-cpi-august-data-2023-9">Consumer Price Index rose</a> by 0.6% month over month in August, while core CPI increased 0.3%. The latest numbers mean there's a decent chance of another rate hike before the end of the year, <a href="https://markets.businessinsider.com/news/stocks/recession-outlook-federal-reserve-rate-hike-august-cpi-inflation-investors-2023-9" target="_blank" rel="noopener">according to some estimates</a>.</li><li>Stock picks for bears and bulls. Bank of America analysts believe the economy has turned the corner and identified <a href="https://www.businessinsider.com/stocks-to-buy-economy-recovery-recession-investing-bank-of-america-2023-9" target="_blank" rel="noopener">50 stocks positioned to excel</a> during a recovery. But if you're feeling bearish, Morgan Stanley picked <a href="https://www.businessinsider.com/investing-stocks-to-buy-now-upside-market-correction-morgan-stanley-2023-9">nine stocks</a> that'll allow you to hedge against the risk of a downturn. </li><li>The FIRE movement — Financial Independence, Retire Early — isn't always lit. Retiring young sounds great, but it can come with its own set of challenges. <a href="https://www.businessinsider.com/fire-movement-limitations-cons-early-retirees-back-to-work-2023-9">Five early retirees</a> detailed problems with managing their money and finding a sense of purpose.</li></ol>3 things in tech<a href="https://www.businessinsider.com/incredibly-lonely-high-paying-tech-job-seattle-2023-9"></a><div type="image" title="photo compilation of person looking out on Seattle skyline" height="960" width="1280" msid="103665799" hostid="261" sizebytes="188396"></div><ol><li>"I moved to Seattle for a high-paying tech job. It turned out to be the loneliest time of my life." A recent grad moved from New York City for a software engineering role at Amazon, but nobody told him <a href="https://www.businessinsider.com/incredibly-lonely-high-paying-tech-job-seattle-2023-9">how difficult making friends</a> would be. </li><li> Startup funding woes. VC funding for young startups is becoming more scarce — it's fallen for the <a href="https://www.businessinsider.com/seed-startups-venture-capital-funding-rounds-decline-2023-9">fourth quarter in a row</a>. Meanwhile, many startup founders are beginning to <a href="https://www.businessinsider.com/startup-founders-are-bootstrapping-instead-of-raising-money-from-vcs-2023-9">turn away from VC funding</a> due to their "debilitating" influence after investing.</li><li> Apple's iPhone 15 event was revealing about its business. Wall Street had a pretty <a href="https://markets.businessinsider.com/news/stocks/apple-iphone-15-launch-event-wall-street-reactions-aapl-stock-2023-9">mixed reception</a> of the new device. And while Apple celebrates the launch publicly, it's internally grappling with an increased reliance on China that could <a href="https://www.businessinsider.com/apple-dependent-on-china-economy-manufacturing-problem-2023-9">cost the company billions</a>.</li></ol>3 things in business<a href="https://www.businessinsider.com/online-shopping-hidden-junk-fees-getting-worse-sneakier-prices-tickets-2023-9"></a><div type="image" title="Digital illustration of $10 with a hidden 0.00 behind it (making it $100.00)" height="960" width="1280" msid="103665801" hostid="261" sizebytes="92718"></div><ol><li>Hidden fees are about to get a lot more hidden. The recent push to eliminate junk fees means they're now folded into the upfront price — making it even <a href="https://www.businessinsider.com/online-shopping-hidden-junk-fees-getting-worse-sneakier-prices-tickets-2023-9" target="_blank" rel="noopener">harder to see them</a>. </li><li>A tiny-home startup endorsed by Elon Musk and Post Malone has got a regulator's attention. Three former Boxabl employees told Insider they were <a href="https://www.businessinsider.com/boxabl-tiny-homes-securities-and-exchange-commission-sec-2023-9">recently contacted and interviewed</a> by the SEC. The news comes after an <a href="https://www.businessinsider.com/boxabl-tiny-home-casita-production-governance-galiano-paolo-tiramani-spending-2023-2" target="_blank" rel="noopener">Insider report earlier this year</a> about production problems and questionable governance at Boxabl.</li><li>Some workers are super commuting to avoid moving. Amid the return-to-office push, some workers — <a href="https://www.businessinsider.com/workers-commute-plane-hybrid-work-rto-2023-9">from interns to CEOs</a> — are making extra-long commutes multiple times a week instead of moving closer to the office.</li></ol>In other news<a href="https://www.businessinsider.com/hunter-biden-sues-former-trump-aide-garrett-ziegler-illegal-data-hacking-2023-9"></a><div type="image" title="Hunter Biden and Garrett Ziegler" height="1080" width="1440" msid="103665803" hostid="261" sizebytes="60660"></div><ul><li>Hunter Biden is suing a Trump aide over claims of <a href="https://www.businessinsider.com/hunter-biden-sues-former-trump-aide-garrett-ziegler-illegal-data-hacking-2023-9">hacking his data</a>.</li><li>The <a href="https://www.insider.com/vmas-celebrities-best-red-carpet-fashion-looks-2023-9">best and most daring looks</a> from the VMAs.</li><li>Google cut jobs in its <a href="https://www.businessinsider.com/google-layoffs-recruiting-job-cuts-2023-9">recruiting division</a>.</li><li>Leaked documents: Microsoft managers need to distribute employee performance <a href="https://www.businessinsider.com/microsoft-new-employee-review-system-stack-ranking-2023-9">across a scale</a>.</li><li>Kristin Cavallari wants to introduce her true self through <a href="https://www.insider.com/kristin-cavallari-podcast-laguna-beach-divorce-interview-2023-9" target="_blank" rel="noopener">her new podcast</a>.</li><li>Adtech firm GroundTruth hires bankers to <a href="https://www.businessinsider.com/groundtruth-hires-jegi-clarity-to-explore-possible-sale-2023-9">possibly pursue a sale</a>.</li><li>Warren Buffett is just <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-stock-wealth-page-gates-ellison-musk-billionaires-2023-9">a few billion dollars away</a> from matching the fortunes of Bill Gates and Larry Ellison.</li></ul>What's happening today<ul><li>General Motors, Stellantis, and Ford auto workers could go on strike. Walking out could <a href="https://www.businessinsider.com/auto-industry-uaw-strike-effects-inflation-michigan-recession-biden-election-2023-9">drive up inflation</a>, push Michigan into a recession, and even hurt Biden's re-election.</li><li>Nintendo Direct is hosting a livestream. It'll highlight Nintendo Switch games coming out this winter. The livestream will start at around 10 a.m. ET.</li><li>Earnings today: Adobe <a href="https://markets.businessinsider.com/earnings-calendar">and other companies</a>.</li></ul><a href="https://www.insider.com/what-to-pack-for-train-trip-from-frequent-train-traveler-2023-9"></a><div type="image" title="the author editing photos on her laptop during a 30-hour train ride in October 2021" height="975" width="1300" msid="103665807" hostid="261" sizebytes="123230"></div>For your bookmarks<h2>Train ride starter pack</h2>"I've spent 117 hours traveling 4,700 miles by train." This seasoned train traveler always brings essentials like <a href="https://www.insider.com/what-to-pack-for-train-trip-from-frequent-train-traveler-2023-9">sunglasses and motion sickness medicine.</a>The Insider Today team: <a href="https://www.businessinsider.com/author/dan-defrancesco">Dan DeFrancesco</a>, senior editor and anchor, in New York City. <a href="https://www.businessinsider.com/author/diamond-naga-siu">Diamond Naga Siu</a>, senior reporter, in San Diego. <a href="https://www.businessinsider.com/author/hallam-bullock">Hallam Bullock</a>, editor, in London. <a href="https://www.businessinsider.com/author/lisa-ryan">Lisa Ryan</a>, executive editor, in New York.

Insider Today: Big banks are screwed

<ul class="summary-list"><li>Warren Buffett plowed $3 billion into General Electric at the height of the financial crisis.</li><li>The investor received $3 billion in preferred stock paying a 10% dividend, plus stock warrants.</li></ul>Warren Buffett piled $3 billion into <a href="https://markets.businessinsider.com/stocks/ge-stock">General Electric</a> in October 2008, handing vital cash to the industrial titan just as credit markets seized up and global demand slumped. Here's a look back at the storied investment.<h2>Weathering the storm</h2>GE CEO Jeff Immelt had <a href="https://www.sec.gov/Archives/edgar/data/40545/000004054508000041/ex99.htm">issued a profit warning</a> in late September, citing "unprecedented weakness and volatility in the financial services markets." The credit crunch was especially bad news for GE Capital, the group's massive financing division that loaned money to consumers and businesses.Immelt cut the dividend that GE Capital paid to headquarters, halted share buybacks, and put further borrowing plans on hold. He also moved up his goal to reduce GE's reliance on financing profits to the end of 2009.GE's stock price had plunged by roughly a third since the start of 2008. However, its market capitalization was still more than $245 billion, making it the country's second-most valuable public company after Exxon.Faced with the monumental challenge of reshaping GE and riding out a brutal downturn, Immelt and his team decided they could use a "rainy-day fund" or a "backup to a backup," <a href="https://www.wsj.com/articles/SB122288377688594651">The Wall Street Journal reported at the time</a>.Days after Buffett agreed to <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-goldman-sachs-sale-billions-return-bailout-2020-5-1029212109">plow $5 billion into Goldman Sachs</a>, Immelt contacted the <a href="https://markets.businessinsider.com/stocks/brk-b-stock">Berkshire Hathaway</a> boss to propose a similar deal, The Journal said.The pair shook hands on Berkshire investing $3 billion in GE in exchange for preferred stock paying a 10% annual dividend. GE would be allowed to redeem the shares at a 10% premium after three years.The investor also secured <a href="https://markets.businessinsider.com/news/stocks/us-government-warren-buffett-big-4-airlines-shareholder-bailout-2020-4-1029088827">warrants</a> enabling Berkshire to purchase 135 million of GE's common shares for $22.25 each — close to its stock price at the time — at any point in the next five years.<h2>"Insurance is expensive, especially when you buy it from Warren Buffett"</h2>GE accepted Buffett's terms because the famed investor provided more than money; his backing was also a vote of confidence in its future."GE is the symbol of American business to the world," Buffett said in the <a href="https://www.businesswire.com/news/home/20081001006312/en/ADDING-REPLACING-GE-Announces-Common-Stock-Offering">press release announcing the deal</a>. "I am confident that GE will continue to be successful in the years to come."Immelt added that Buffett's cash, plus at least $12 billion from a public stock offering, would boost GE's flexibility, help it execute its plans faster, and allow it to "play offense in this market should conditions allow."GE's shareholders recognized Buffett's money was a useful cushion for the company."It's an insurance policy in case things get worse," fund manager Wayne Titche told The Journal at the time. "In today's market, better safe than sorry."However, they still balked at the high interest rate and bemoaned the dilution of existing investors' shares."Insurance is expensive, especially when you buy it from Warren Buffett," shareholder Arthur Rice told the newspaper.Buffett trumpeted the GE deal, as well as similar bets on Goldman Sachs and Wrigley, in his <a href="https://www.berkshirehathaway.com/letters/2008ltr.pdf">2008 letter to shareholders</a>."We very much like these commitments, which carry high current yields that, in themselves, make the investments more than satisfactory," he said.In all three cases, Berkshire acquired "substantial equity participation as a bonus," he added.<h2>Buffett raked in $1.5 billion — and could have made more</h2>Berkshire received $3.3 billion when GE <a href="https://www.berkshirehathaway.com/letters/2011ltr.pdf">redeemed</a> its preferred stock in October 2011, as well as $900 million in dividends in the intervening three years.The pair also amended Berkshire's warrants in 2013 to allow the conglomerate to exercise them without spending any cash. It <a href="https://www.sec.gov/Archives/edgar/data/40545/000093041315004580/c83063_424b2.htm">received</a> 10.7 million shares as a result, which it eventually sold them for about $315 million in 2017.Between the $300 million premium, the dividends, and the proceeds from the share sales, Berkshire raked in about $1.5 billion in profit or a 50% return.Moreover, Buffett revealed at Berkshire's annual meeting in 2018 — almost a decade after the deal — that he could have driven a harder bargain, but cut GE some slack given the extraordinary circumstances."They were going to take the terms we offered," he said, according to a transcript on Sentieo, a financial-research site."But we actually didn't push it to the limit because there really wasn't anybody else around."

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