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Buffett Invests $5B in Goldman

By John Johnson,  Newser Staff

Posted Sep 23, 2008 5:31 PM CDT
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(Newser) – Warren Buffett is betting $5 billion on the future of Goldman Sachs, the Financial Times reports. The move by one of the world's savviest investors is one of the biggest signs of confidence in the financial system since the current turmoil began, the Wall Street Journal notes. Goldman, which this week changed its structure from an investment bank to a bank holding company, will raise another $2 billion in capital by selling common stock at a public offering.

"Goldman Sachs is an exceptional institution," said Buffett, whose investment will come in the form of perpetual preferred shares with a 10% dividend. "It has an unrivaled global franchise, a proven and deep management team and the intellectual and financial capital to continue its track record of outperformance," he said.

A man washes a cobblestone street beneath Goldman Sachs headquarters, center, in New York's financial district, Tuesday, Sept. 16, 2008.
A man washes a cobblestone street beneath Goldman Sachs headquarters, center, in New York's financial district, Tuesday, Sept. 16, 2008.   (AP Photo/Mark Lennihan)
Warren Buffett in a 2005 file photo.
Warren Buffett in a 2005 file photo.   (AP Photo)
The building on Broad Street in New York's Financial District that houses brokerage firm Goldman Sachs is shown in this 2007 file photo.
The building on Broad Street in New York's Financial District that houses brokerage firm Goldman Sachs is shown in this 2007 file photo.   (AP Photo)
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