THE BOSTON GLOBE: Warren Buffett, America's most famous investor and one of the world's richest men, said yesterday he would invest $5 billion in Goldman Sachs in a move that could bolster confidence in the financial markets.
Until now, Buffett, who has navigated the stock market with legendary prowess, has largely refrained from investing in the stricken financial industry, saying repeatedly that things could get worse.
Thousands of people on and off Wall Street follow Buffett's moves, so his decision to invest in Goldman immediately heartened investors. After falling nearly 1.5 percent during the day, the Standard & Poor's 500 index erased its loss in after-hours trading on news of the investment.
Buffett's conglomerate, Berkshire Hathaway, unveiled the move only days after Goldman, long the premier investment house on Wall Street, embarked on a radical plan to transform itself into a traditional bank in order to ensure its survival. Goldman, which examined various options over the past week as its shares tumbled and some clients abandoned the firm, said it would sell at least $2.5 billion of common stock to the public.
Since the credit crisis flared more than a year ago, Buffett had stayed his hand even as other investors poured money into ailing American financial companies like Citigroup and Merrill Lynch, only to see their investments wither.
Such wariness is a hallmark of Buffett's investing style, and many on Wall Street have wondered when he might jump in.
Buffett, in the statement, called Goldman Sachs an exceptional institution.
"It has an unrivaled global franchise," Buffett said, "a proven and deep management team and the intellectual and financial capital to continue its track record of outperformance."
Berkshire Hathaway will receive perpetual preferred shares in Goldman, which will pay a 10 percent annual dividend, or $500 million a year. Buffett Invests in Goldman Sachs >>> By Ben White | New York Times News Service | September 24, 2008
LE FIGARO:
Warren Buffett investit dans Goldman Sachs : Le milliardaire américain va investir 5 milliards de dollars dans la banque d'affaires. Cette opération devrait ramener la confiance chez les investisseurs.
L'oracle d'Omaha apporte l'espoir sur les marchés financiers. Le milliardaire américain Warren Buffett a en effet annoncé mardi soir, après la clôture de Wall Street, qu'il va investir 5 milliards de dollars dans Goldman Sachs. Il estime que la banque d'affaires américaine est une «institution exceptionnelle qui a une présence mondiale sans rivale, une équipe de direction fournie et aguerrie, et le capital financier et intellectuel pour continuer à surperformer comme par le passé». >>> Perrine Créquy | 24.09.2008
NZZ Online:
Buffett investiert fünf Milliarden Dollar in Goldman Sachs: Vertrauenssignal für gebeutelten Finanzmarkt
Der Multimilliardär Warren Buffett steigt mit mindestens fünf Milliarden Dollar bei der amerikanischen Investmentbank Goldman Sachs ein. Das Engagement wird als ermutigende Vertrauensbekundung für den gebeutelten Finanzmarkt in den USA eingeschätzt. >>> | 24. September 2008
THE TELEGRAPH:
Warren Buffett Compares US Bail-out Decision to Action over Pearl Harbor: Warren Buffett, the US billionaire buying a $5bn stake in Goldman Sachs, has said recent economic turmoil "will look like nirvana" if senators do not approve a $700bn bail-out plan soon. >>> By Rowena Mason | September 24, 2008
The Dawning of a New Dark Age – Paperback (US) Barnes & Noble >>>
The Dawning of a New Dark Age – Hardcover (US) Barnes & Noble >>>
