Goldman Sachs and Warren Buffet

[Gawain 0]

One item that received some coverage this past week, but has been glossed over is Warren Buffet's $5B investment in Goldman Sachs.

Now, to "everyman" this is a good sign, one of the world's most shrewd businessmen is using the free market to his advantage and clearly this is a good thing in the business world.

Mr. Buffet is a democrat, and he's on the record commenting about the unfairness of elite, etc. His recent gaffe about his secretary paying a higher rate than him didn't do the liberal cause any good, and his most recent business transaction won't either.

His deal with Goldman Sachs is as follows:
$5B investment, separate preferential share offering
Minimum return: 10% annually
Option: Additional $5B to increase holding investment to $10B (anytime within the next five years, at $115/sh)

Interestingly, with his investment and first day stock movement after the deal was announced, in theory, he had already made $780M...

This apparently kicked another deal to the curb that Goldman was working on with Sumitomo Mitsui Financial Group worth $2.5B.

Now, I have no issues with this deal. Buffet had the money, Goldman had the goods (on sale), and Buffet wrested extremely attractive terms for himself and Berkshire Hathaway. Just remember, he's a businessman first, and I think he's getting a piece before laws change in the coming months and years.

Next time he's on the record about fairness, just remember his little cream-puff deal here. It's sweet, no one else will get anything like it, and I can only hope that my own long term investing and retirement planning is only half as good as Buffet's.

So I try and I scream and I beg and I sigh
Just to prove I'm alive, and it's alright
'Cause tonight there's a way I'll make light of my treacherous life
Make light!

[airdvr 210]

Agreed. He's dealing before his hands are tied. Smart guy. Rings of Mr. Potter trying to steal the Bailey Building & Loan

Please don't dent the planet.

Destinations by Roxanne

[Lucky... 0]

And he's donating most of his fortune to charity via the Bill Gates Foundation after he dies, so what's your point?

[mnealtx 0]

Quote

And he's donating most of his fortune to charity via the Bill Gates Foundation after he dies, so what's your point?

What does that have to do with what he's doing NOW?

Mike
I love you, Shannon and Jim.
POPS 9708 , SCR 14706