Thursday, October 10, 2013
Warren Buffett Converts Crisis-Era Warrants for 2.8% of Goldman Sachs
At the time, Buffett became savior to a number of faltering institutions by infusing both cash and his impeccable reputation through similar deals such as with Bank of America ( BAC ), GE ( GE ) and Dow Chemical ( DOWB ).
Buffett's cash commitment toward his crisis-era deals totaled $14.5 billion, he said in his 2008 letter. He had to sell stock in his holdings in Johnson & Johnson ( JNJ ), Procter & Gamble ( PG ) and ConocoPhillips ( COP ) to generate the capital to make them.
"We very much like these commitments, which carry high current yields that, in themselves, make the investments more than satisfactory. But in each of these three purchases, we also acquired a substantial equity participation as a bonus," Buffett wrote
Read more: http://www.nasdaq.com/article/warren-buffett-converts-crisisera-warrants-for-28-of-goldman-sachs-cm285398#ixzz2hJP65EHE
Labels: Goldman Sachs