Warren Buffett Now Officially Owns 2.8% of Goldman Sachs

Warren Buffett, Goldman Sachs: In a 13G filing just reported with the SEC, Warren Buffett and Berkshire Hathaway reported a 2.8% stake in Goldman Sachs Group Inc (NYSE:GS). The total position of 13,062,594 shares represents $1.99 billion worth of Goldman stock, and came via warrants bought in 2008.

Warren Buffett portrait

The relationship between Buffett and Goldman Sachs can be traced back to 2008, when Berkshire played a crucial role in rescuing the bank through the offering of a $5 billion lifeline, which aside from warrants also provided Berkshire with $5 billion worth of preferred stock with $500 million annual dividend.

Buffett could have bought 43.5 million shares of Goldman Sachs at a price of $115 per share, until October 1. However, in March the parties renegotiated the deal, which provided that Berkshire would get an amount of Goldman Sachs shares representing the difference between the average closing price for 10 days until October 1, and the exercise price, times 43.5 million. Buffett said this in March:

“We intend to hold a significant investment in Goldman Sachs, a firm that I did my first transaction with more than 50 years ago, [...] I have been privileged to have known and admired Goldman’s executive leadership team since my first meeting with Sidney Weinberg in 1940.”

In this way, Buffett and Berkshire not just became one of the largest shareholders of Goldman Sachs, but also saved a ton of money they would’ve spent as transaction costs if Buffett decided to exercise the warrants and sell the shares for a profit.

Disclosure: none

Recommended Reading:

How Does Warren Buffett Make Money? This Study Attempts to Answer That Question

Warren Buffett Strategy: How to Get ‘Buffett Yield’

What Warren Buffett Has to Say About Big Banks and TARP

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!