Deals
Buffett Generates $3.7 Billion on 2008 Goldman Sachs Investment
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Warren Buffett’s Berkshire Hathaway Inc. has made about $3.7 billion, including paper profits, from its $5 billion investment in Goldman Sachs Group Inc. at the depths of the financial crisis in 2008.
Goldman Sachs today said it will pay $5.65 billion to redeem preferred stock it sold to Berkshire. The price includes the original investment, plus a 10 percent premium and first-quarter dividend. Berkshire still holds warrants to buy $5 billion of the New York-based bank’s common stock with a strike price of $115 per share, which have generated a paper profit of more than $1.9 billion, data compiled by Bloomberg show.