Warren Buffett has invested $5 billion in cash into the new and improved Goldman Sachs, now a bank holding company instead of an investment bank. Here’s the deal as reported by CNBC…
Berkshire will buy $5 billion of perpetual preferred stock that carries a 10 percent dividend. It also will receive warrants to buy $5 billion of common stock at $115 per share, exercisable within five years.
Sweet!
This is definitely a plus for market psychology. This is the kind of market that is taylor made for Buffett putting his cash to work.
