Monday, September 30, 2013

Financial Crisis Five Years On: "Buffett Poised to Get $2 Billion Goldman Stake" (GS; BRK.a)

From Bloomberg:
Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) is poised to get more than $2 billion in Goldman Sachs Group Inc. stock through warrants acquired during the depths of the 2008 financial crisis.

Berkshire may receive about 13.2 million shares in New York-based Goldman Sachs, according to an agreement that uses the average closing price on the 10 trading days through today to calculate Buffett’s stake. The number of shares is an estimate based on the nine trading days through Sept. 27 and may change based on fluctuations in the stock price today. The bank closed at $159.85 last week.

Goldman Sachs turned to Omaha, Nebraska-based Berkshire in 2008 to bolster capital and shore up market confidence when shares plunged following the collapse of Lehman Brothers Holdings Inc. Buffett, Berkshire’s chairman and chief executive officer, invested $5 billion for a preferred holding and got warrants to buy $5 billion of stock for $115 a share. ...MORE
As we said at the time:
So Why No Climateer Investing Comment On the Buffett Goldman Deal? (BRK.A; GS)

Long time CI readers know that we've been stalking Warren for a while (I didn't understand BKHT at $800, he said shame-facedly).
This $5 bil. deal has some very intriguing ramifications for both financiers and policymakers. It also contains insight for investors that I want to think through.
In the meantime, use of the 'Search Blog' box for Buffett or Berkshire is good fun. Possibly rewarding too.
Or try 'Munger', not nearly as many results but not bad. The first hit is:
The 5 a.m. Buffett Breakfast Club
They’re rich. They’re cheerful. They’re morning people.
a few results later, the best senior management 'all purpose turn-around' I've ever seen:
"Think about it a little more and you will agree with me because you're smart and I'm right."
-Charlie Munger, Vice-Chairman, Berkshire Hathaway
See also:
Goldman Sachovia Would’ve Happened If Warren Buffett Hadn’t Stepped In And Pointed Out The Obvious (BRK.A; GS)

"Warren Buffett Cell Phone Skills: Did They Doom Lehman?"