NOW THIS IS A GOOD DEAL
the legendary man has done it again. he has just bought US$5b of goldman preferred shares which pay 10% annual dividend, and come with warrants allowing him to buy another US$5b of goldman common stocks at anytime for a five year period at a strike price of US$115 per share. on top of that, as a preferred stock holder, he gets a piece of goldman way ahead of the common shareholders if anything happens to the firm.
just 3 points to ponder:
1. why is goldman, the most arrogant bank on wall street, selling themselves so cheaply
2. the americans should invite buffett to be in the bailout team, he sure knows how to buy companies looking at his past records
3. when buying distressed assets, buffett has demonstrated that you should always use "fire sale" price and not "market" price as indicated by some. regardless bailout or no bailout, purchase prices should be look upon purely on a commercial basis. there is no other way to it.
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