Buffett hasn't lost anything on GS. He is getting 10% guaranteed on a 5B investment with warrants that last 5 years to buy GS at 115. Warrants are just like options. The buyer has the right but not the obligation to buy the stock at 115 anytime within that 5 year period, assuming they are American warrants. If GS is above 115 anytime during this 5 year period and Buffett wants to be a long term holder of the stock he will buy the stock. Otherwise, the only risk he faces from GS is if they default on their debt.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ayIRzsMlT.6k&refer=home "Berkshire has posted four straight profit declines, the worst streak in at least 13 years, on falling returns at insurance businesses and investment losses. Buffett, ranked by Forbes magazine as the richest American, has committed at least $28 billion this year to acquire companies, finance buyouts and purchase securities as prices fell and competitors were hobbled by limited access to credit. " ---------- the company seems like a convoluted mess
Man, with the 10 Billion he spent on GE and GS he could buy half the retail sector and their real estate by next year. Forget snowball, he got snowed. Plus I believe those investments were preferred stock; junior to debt in liquidation.
While everybody else are losing money or facing bankruptcy and you're just reducing your profit; it's not bad at all.
lol BRK.a down another 7% while the major indexes are only down 2.5% I think BRK.a has some toxic assets
http://dealbook.blogs.nytimes.com/2...d-investing/?scp=1&sq=buffett options'&st=cse how can buffett lose on this deal? the options are not exercisable till 2019. inflation will make options worthless.
Buffett will not be around by 2019. The moment he is gone, the stock will crater big time. Anybody buying this stock is just waiting for a time bomb to go off.