Is Warren Buffett's Investment In Goldman Sachs The Future Of Wall Street?

24.09.2009 17:20

The anniversary of Warren Buffett's ride to the rescue of Goldman Sachs with a $5 billion cash infusion at the height of the Wall Street panic is a good opportunity to examine what the terms of his deal might tell us about the future of capital in the financial sector.

Buffett didn’t buy Goldman common stock. Instead, he privately negotiated a very special preferred stock deal that made the capital very expensive for Goldman. He took taking $5 billion worth of perpetual preferred stock that promised him a 10% dividend and warrants to buy $5 billion of common stock with a strike price of 115 a share. Click here

Jan Hýsek * Top 5