buying $5B of GS perpetual 10% pfd stock, callable anytime at 10% premo, with warrants strike @ $115 for $5B excercisable anytime for 5 years. must be nice to have $5B sitting in cash.
Solid investment
it is weird, b/c it doesnt fit with his “easy to understand what they do” companies/typical investments, but GS ia solid franchise with strong mgmt, so I guess it fits…a lot of people would say GS is a hedge fund or a black box in some ways
Solid management? Yeah they really had some “stars” didn’t they. I believe Treasury Sec. Paulson was the CEO there for a time in the 90s. Hmmm…wasn’t that approximately the time period that a lot of these “financial innovations” came up? Willy
Well, the warrants alone are worth 1.5B or something. Seems good to me…
this is what Buffett does with the safe cash portion of the portfolio. ha. not a real investment.
Buffet should just day trade it, tomorrow, and skip town.
daj224 Wrote: ------------------------------------------------------- > it is weird, b/c it doesnt fit with his “easy to > understand what they do” companies/typical > investments, but GS ia solid franchise with strong > mgmt, so I guess it fits…a lot of people would > say GS is a hedge fund or a black box in some ways Can’t say that Insurance is one of his major interests
Now that GS is a holding company, what changes can we expect? Are they essetially the same?
I see so much about how this buffett buy is a strong sign for the markets(which in some ways I agree with), but the guy is getting something that not many others could get. Its not like he scooped up 5B of common…this guy gets some wicked deals and I am jealous.