Warren Buffet has his checkbook out!

[glock35ipsc]

He has got to be like a kid in a candy store right now! First Goldman Sachs for $5B, now GE for $3B.

Warren Buffett invests $3 billion in GE: Financial News - Yahoo! Finance

[kork13]

For sure. Although his money is certain to help those companies in times they're probably getting desperate for it, he's lined up for quite the payoff once things go back up.


......if only I could make a play so well as that... sadly, my pockets just aren't quite deep enough...

[Broken Arrow]

Warren Buffett is a shrewd businessman. I don't recall the exact details, but he's getting a lot of perks from Goldman Sachs just so Goldman can seal the deal and get Warren Buffet's vote of confidence more than anything, not just his money. I mean, $5B is a massive number for us, but it's just a drop in the bucket for those two.

I don't know anything about the GE deal that just came up. Will get right to it when I get the chance.

[glock35ipsc]

It's a very similar deal to the GS purchase.

Buffett is buying $3 billion of preferred shares, which carry a 10% annual dividend. He will also receive warrants to buy $3 billion worth of GE common shares for $22.25 each, exercisable at any time for a five-year term.

As of right now GE is trading at $24.68.

[Snave]

Interesting that Buffett is seen as a savior to these companies and helping the economy. Isn't he just being a capitalist? Funny how a capitalist in this instance is seen as a savior.

[Broken Arrow]

Finally had time to read more about this.

Yeah, it's basically the same deal with GE that was proposed by GS.

Make no mistake: These corporations came to Warren, not the other way around. True that Warren Buffet liked these companies to begin with, but it was these corporations that offered him a sweet deal to get him to jump on board.

To the rest of America, it may look like, "Oh! These companies must be great if Warren Buffett is buying them!"-- and yes, they are indeed good companies-- but Warren Buffett didn't exactly buy these companies so much as these companies are buying his Seal of Approval.