GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Buffett buys into Goldman Sachs

September 23, 2008 | About:

Warren Buffett buys $5 billion of 10% Yielding Perpetual Preferred Stock and receives warrants for $5 billion of common stock at a strike price of $115. Buffett is essentially buying 10% of Goldman based at its current market cap of around $50 Billion. This is a big endorsement for Goldman.

Read the complete article


Happy investing to all.

Rating: 3.5/5 (10 votes)

Comments

mountaincloud
Mountaincloud - 5 years ago


Anything peculiar about 10% here, (10 year treasury yeilding 3.85%, current inflation at 5.37%) ?

Preferred at 10% yield (or callable at any time at a 10% premium)

Strike price of $115 is about 10% below current price of $125.

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK