on the bloomberg wire...
Goldman to Raise at Least $7.5 Billion From Berkshire, Public
wow. i thot buffet only invested in companies he knew...he has that much faith in gs? whats going on here? wow
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Buffet has been ahead of the curve for years now - he must see something the general public doesn't. I guess if you can handle the risk then you won't be seeing financials this cheap for a long time.
EDIT: Didn't see Bowser already mentioning this, WSJ has a bit more...
http://online.wsj.com/article/SB122220798359168765.html?mod=yahoo_hs&ru…
Still doesn't say what he lost, though...
It's GS -- backed now by the Fed -- with 22:1 leverage ratio relative to MS's 30:1 -- at an industry and company lows... sounds like a good move to me.
And it is a perpetual preferred. Buffett will be raking in the dough for some time to come.
He also has warrants to buy a lot of shares at $115. Will potential dilutive effects of this cause GS stock to go down?
How did Buffet's Solomon Brothers investment work in the 80's? I'm not being a prick, I really don't know, I briefly heard it mentioned today before running out the door.
Anyways, it's nice to see the private-side finally get involved in this mess with Chris Flowers and now Buffett making deals.
Buffett is gonna be cleaning up. so many bargains getting shoved in his face.
That had to hurt.
J.P. Morgan used to bail out companies to prevent the economy from collapsing. This time Warren Buffett's 7.5 billion might not be something big or effective. But sometimes for people as rich as him, a gesture is very important. It might even be for political reasons than for financial reasons. Because you don't want people to remember you as the person "who kept all the money while everyone else was suffering".
Plus, the economy's gonna rebound someday. In the short term he might lose money, in the medium term he's likely to gain. And in the long term, well, in the long run we are all dead.
I think Buffet's investment in GS will take the stock up because it clearly affects market sentiment.
repost
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either he sees the future or is getting senile..
lets not forget that WB is getting up there in years.
as i recall, he was interested in making an investment in Bear Stearns but couldn't agree with good ol jimmy cayne on the huge premiums suggested.
His Solomon bet worked out well from what I remember from one of his biographies. The terms he got with GS are pretty nice. I think he's probably gotten a very good deal on this one. The warrants are already in the money and are good for 5 years.
this kind of anlaysis is circular... if buffet has invested in bear, then it might not have collapsed
I'm surprised no one pointed this out yet... It's Omaha, not Ohmaha. Unless you were trying to be funny. If so, I missed the point.
Value add.
the point f9 -
thanks for the "update" though. (hint. that was an attempt to be funny).
anything else from you today? or you need some more time to rummage through my tracking history? be my guest.
doh!
Don't flatter yourself. I just happened to post on two of your threads.
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