Thursday, September 25, 2008

Warren Buffet at What He Knows Best

The Goldman Sachs Group, Inc. (NYSE: GS) announced today that it has reached an agreement to sell $5 billion of perpetual preferred stock to Berkshire Hathaway, Inc. in a private offering. The preferred stock has a dividend of 10 percent and is callable at any time at a 10 percent premium. In conjunction with this offering, Berkshire Hathaway will also receive warrants to purchase $5 billion of common stock with a strike price of $115 per share, which are exercisable at any time for a five year term.”

PS. Goldman Sachs is now trading at $130 - so Warren, in addition to getting 10% interest and a 10% premium for getting out - he has a $15 profit so far on his rights to purchase $5 Billion in stock (43 1/2 million shares)or $652 million profit (theoretically) in less than a week.

Berkshire Hathaway Board of Directors

Warren E. Buffett 78 Chairman of the Board, Chief Executive Officer

Charles T. Munger 84 Vice Chairman of the Board

Marc D. Hamburg 58 Vice President

Ronald L. Olson 67

Walter Scott Jr. 76

Donald R. Keough 81 Director

Thomas S. Murphy 82 Director

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