Wednesday, September 24, 2008
Buffett Buys stake in Goldman Sachs
Warren Buffett the Richest man in the World, and Greatest Investor ever bought $5 billion of perpetual preferred stock with a 10 percent dividend. Berkshire also gets warrants to buy $5 billion of common stock at $115 a share at any time in the next five years.
Goldman is offering 2.5 Billion NEW Shares of Common Stock. This is dillutive to the current float of Goldman Sachs and Effectively makes each current common share worth less. This was a less talked about in many of the Goldman/Buffett Headlines.
Buffett did not get to be the richest man in the world by investing in businesses and giving the existing owners and shareholders the best deal.
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