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Buffett Buys Goldman Stake in `Economic Pearl Harbor' (Update1)

By Erik Holm

Sept. 24 (Bloomberg) -- Billionaire Warren Buffett, calling turmoil in the markets an ``economic Pearl Harbor,'' said his $5 billion investment in Goldman Sachs Group Inc. is an endorsement of the Treasury's $700 billion bank rescue plan.

``I am betting on the Congress doing the right thing for the American public and passing this bill,'' Buffett said on cable channel CNBC today. ``I certainly have a vote of confidence in Goldman and vote of confidence in Congress..."

http://www.bloomberg.com/apps/news?pid=20601087&sid=axN8Gl5_fsxA&refer=home
 
As an investor, Warren has indeed a clear vested interest, in the good american tax payer bailing out the Wallstreet establishment/system which profited only few. So this is morally wrong. No if congres to not approve this bill, what is the worst case scenario....nobody really know. So it would be a jump in the unknown. would be interesting
 

Bastian Gross

German Mathquant
Warren Buffet is going to invest in Goldman Sachs!
Is he the awaited saviour on the Wallstreet? Is this investion the golden act of faith in Anglo-Saxon financial markets?

Watch!
 
As an investor, Warren has indeed a clear vested interest, in the good american tax payer bailing out the Wallstreet establishment/system which profited only few. So this is morally wrong. No if congres to not approve this bill, what is the worst case scenario....nobody really know. So it would be a jump in the unknown. would be interesting

The term "bailout" is simply innaccurate. A purchase of assets at what will likely be below fair value is not a bailout. Nobody is getting "something for nothing."
 

Bastian Gross

German Mathquant
"Hope is not a conviction that something would turn out well, but the certainty that something makes sense, regardless of how it turns out" - Warren Buffet
 
The naysayers will always say nay.

However, this is the guy that only takes "nickels from a dead man". So for the ultra risk-averse Buffett to put 5 billion into GS, I think this should bring some more stability to the financial system.

Thank you, WB.
 
Happy end of this story for Warren:


July 23 (Bloomberg) -- Warren Buffett’s option to buy shares of Goldman Sachs Group Inc., part of an agreement reached at the depths of the credit crisis, has earned a profit on paper of about $2 billion, a return of more than 40 percent.

Goldman Sachs today passed $162 in New York trading for the first time since rival Lehman Brothers Holdings Inc. collapsed in September. Buffett’s Omaha, Nebraska-based Berkshire Hathaway Inc. has warrants to buy $5 billion of Goldman common stock for $115 a share any time in the next four years.

Berkshire Profit on Goldman Sachs Passes $2 Billion
 
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