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Buffett's firm invests in Goldman
bbc news-business ^ | September 23, 2008

Posted on 09/23/2008 6:13:49 PM PDT by UMCRevMom@aol.com

Berkshire Hathaway, the company owned by US investment guru Warren Buffett, has bought $5bn (£2.7bn) worth of Goldman Sachs shares.

Mr Buffett, the world's most famous investor, said Goldman was an "exceptional institution".

(Excerpt) Read more at news.bbc.co.uk ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: 110th; banks; billionaires; buffett; financialcrisis; goldmansachsshares; wallstreet; warrenbuffett Comment #1 Removed by Moderator

To: UMCRevMom@aol.com

Wonder what they are buying......


2 posted on 09/23/2008 6:18:12 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: UMCRevMom@aol.com

In my opinion, this is not a bad short term move. However, I think the investment banking landscape has been significantly changed to the point where they’re just not going to be as profitable anymore. The current $135 share price might see a nice bump over the next year or two, but I’d guess this stock goes stagnant after that. Unless, of course, Goldman gets some balls and maybe buys a nice retail bank...


3 posted on 09/23/2008 6:20:10 PM PDT by July 4th
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To: Cold Heat

I thought there was a money crisis, and everyone was frozen.


4 posted on 09/23/2008 6:22:01 PM PDT by Brian S. Fitzgerald
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To: Cold Heat

cumulative preferred.

He gets 10% preferred return probably with an option to convert to common


5 posted on 09/23/2008 6:25:36 PM PDT by cowtowney
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To: Cold Heat

Goldman is a survivor.


6 posted on 09/23/2008 6:28:30 PM PDT by Eric in the Ozarks
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To: Cold Heat
Well isn't that friggin special./sarcasm Smart move.

What's he got a John Corzine for President bumper sticker on his car? /sarcsasm

...The supremacy of finance capital over all other forms of capital means the predominance of the rentier and of the financial oligarchy; it means that a small number of financially “powerful” states stand out among all the rest. The extent to which this process is going on may be judged from the statistics on emissions, i.e., the issue of all kinds of securities. - Vladimir Ilyich Lenin

7 posted on 09/23/2008 6:31:33 PM PDT by PGalt
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To: Cold Heat

Warren knows that Henry will be good to Henry’s friends.


8 posted on 09/23/2008 7:03:48 PM PDT by Notary Sojac (America's never won a "war" unless the enemy was named using a proper noun.)
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To: Cold Heat

Because of Buffett, I wouldn’t buy Gieco Insurance. I wish people would boycott folks like him.


9 posted on 09/23/2008 7:30:03 PM PDT by boycott
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To: boycott

FWIW: Warren’s father Howard was the Ron Paul of his time back when he was a GOP congressman in thee 50s.


10 posted on 09/23/2008 7:32:04 PM PDT by Clemenza (PRIVATIZE FANNIE AND FREDDIE! NO MORE BAILOUTS!)
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To: July 4th; Liz; Grampa Dave; NormsRevenge; tubebender; hedgetrimmer; forester; BOBTHENAILER
"Unless, of course, Goldman gets some balls and maybe buys a nice retail bank..."

Haven't you heard? They already got our beloved Federal Government to make Goldman Sachs a regular ol retail bank already!!!

11 posted on 09/23/2008 7:32:49 PM PDT by SierraWasp (Obama... Just another lying Commonist Communutty Organizing thug from the south side of Chicago!!!)
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To: Brian S. Fitzgerald

Cash and stock.....They are a bank now. They need a national outlet setup, and a failing bank is perfect.


12 posted on 09/23/2008 7:33:36 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: PGalt

Well Mr. galt, that is how it works.....


13 posted on 09/23/2008 7:35:16 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: Notary Sojac
I disagree with Buffet on most everything, but he does know how to do a deal.

GS has two ways of creating a National presence in banking. They can build or buy. I'm bettin on a buy and Wachovia and WaMu come to mind.

14 posted on 09/23/2008 7:39:08 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: Cold Heat
Any pro-Obama T-shirt would have been OK ....

While I'm not a fan of theirs, I have recently bought GS myself. Seems like its undervalued because they got lumped in with other financial stocks that had a lot of housing market exposure, while they don't and the market was a bit slow to realize it.

Specifically, I'm going for a bunch of day trading long positions on the dips--being that I expect it to eventually bounce its way back up to 180 or so making me bucks along the way.

I'm in at around 121 trying to sell around 126 or more tomorrow morning...wish me luck.

15 posted on 09/23/2008 7:52:10 PM PDT by AndyTheBear (Disastrous social experimentation is the opiate of elitist snobs.)
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To: Cold Heat

Looking forward to the FBI’s investigation.

Don’t get me wrong, unlike Lenin, I have never confused capitalism with criminality/socialism...

...just sayin’ his quote is very interesting in the context of what is going on today.


16 posted on 09/23/2008 7:52:54 PM PDT by PGalt
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To: Cold Heat

Goldman does not have the ability to buy those institutions. Goldman’s market cap is less than half of Wells Fargo for instance. Don’t be surprised if Wells makes an offer for them over the next 12 months if the stock price doesn’t go anywhere given the fact Berkshire owns about 10% of WFC.

Buffett can’t lose too easily for this. The terms I believe are 10% yield plus convertible at $115 per share, below the market price. I’d love to lend them on those terms.


17 posted on 09/23/2008 7:58:48 PM PDT by LRoggy (Peter's Son's Business)
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To: Clemenza

FWIW: Warren’s father Howard was the Ron Paul of his time back when he was a GOP congressman in thee 50s.


Thanks. I didn’t know that.


18 posted on 09/23/2008 8:29:37 PM PDT by boycott
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To: PGalt
Yes, I have read many quotes of his that are very prophetic in a way, accurate in every way and I made a assumption.

I believe Lenin studied democracies as one would study the enemy battle space. He was a expert in the field. Professor Lenin.

19 posted on 09/23/2008 9:47:24 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: LRoggy
They could buy one, like WM. Right now, there is only 8.5B in market cap, perhaps less as my data is old. Wamu has offices in about a third of the country and a huge deposit base that everyone is envying.
20 posted on 09/23/2008 9:50:18 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: AndyTheBear
I'm in at around 121 trying to sell around 126 or more tomorrow morning...wish me luck.

I'll bet you get 135+

21 posted on 09/23/2008 9:52:21 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: PGalt
I think the FBI investigation is window dressing. They already know that there was no shenanigans, except for one which will be looked at very closely and that is Lehman.

But, I think in the end it will be found that they had a disagreement with the street on the value of some of their assets. This mark to market accounting on a very complicated instruments is rife with problems, as we can now see.

Lot's of people lost a lot of money and there are accusations, but nothing that I see of any substance.

The thing is, is this Fed intervention does not go through, all these losses will be petty irritations when the real damage begins.

63 trillion is much bigger than 700B and some have it estimated at a quadrillion.

22 posted on 09/23/2008 9:59:27 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: SierraWasp

I have a solution to the ‘credit crunch’.

If you want to buy a house, work a deal with the owner. Let him/her carry your loan.

If you need money for business, get investors the old fashioned way, go to your friends and business contacts and if you’ve got a decent business plan they’ll fund you.

We don’t need Wall St to do this.


23 posted on 09/23/2008 10:30:02 PM PDT by hedgetrimmer
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To: Cold Heat

I just upped my morning sell limit order to 133. I will be at my computer at opening in case I have to bring it down to make the sale.


24 posted on 09/24/2008 3:36:45 AM PDT by AndyTheBear (Disastrous social experimentation is the opiate of elitist snobs.)
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To: hedgetrimmer
Somehow, I missed your great reply. I'm glad I found it!!!

You are absolutely right!!!

25 posted on 09/26/2008 12:15:43 PM PDT by SierraWasp (Obama... Just another lying Commonist Communutty Organizing thug from the south side of Chicago!!!)
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