When the richest man in the world takes action, the financial world takes serious note.
Warren Buffet's Berkshire Hathaway will invest $5 Billion in Goldman Sachs by way of preferred stock and warrants to purchase $5 Billion of common stock at a price of $115 per share. Berkshire Hathaway has 5 years to exercise the warrants and until then will receive a 10% dividend the preferred shares.
The day after Buffet confirmed this investment, Goldman Sachs was trading around $133 a share, already making Buffet's Berkshire Hathaway a huge profit on the deal.
Berkshire Hathaway is trading around $140,000 a share
Comments(9)