Wednesday, March 23, 2011

How About a $6,000,000,000 Payday?

That's what Warren Buffett has coming on April 18, 2011.  During the financial crisis in 2008 Mr. Buffett invested $5,000,000,000 into Goldman Sachs to keep it afloat.  That investment paid 10% a year or $500,000,000.  Goldman will pay it off early so they must pay a $500,000,000 penalty.  His total profit on the investment comes to nearly 6 billion U.S. dollars—in a little over 3 years!  And then Buffett also has options on additional Goldman Sachs stock worth nearly 2 billion dollars!  Buffett coined the phrase, "be careful when others are greedy and greedy when they are fearful."  Wow!  It almost makes you feel sorry for Goldman!  Here's an article from 2008 when he made the investment.