Wednesday, September 24, 2008

Buffett and Goldman Sachs GS

The headline story is about Buffett taking a $5 billion stake in Goldman Sachs. As is often the case, Buffett is getting a special deal that other investors would not get. Still, with the halo effect, it makes it much less likely that Goldman will go the way of Bear Stearns or Lehman Brothers. While $5 billion sounds like a big bet, but Berkshire was looking to invest $20 to $30 billion and is worth about 400 billion.

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