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

#### charlesdwright

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

#### Olivier

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!

#### charlesdwright

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

#### IlyaKEightSix

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.

#### Uncle Max

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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