From The Motley Fool · Bram Berkowitz · · 50s
Warren Buffett's $10 Billion Bank Investments
Buffett bought $5bn each of Goldman Sachs and Bank of America during market stress.
In brief
Buffett bought $5bn each of Goldman Sachs and Bank of America during market stress. Buffett invested $10 billion in two banks when their stocks were under pressure during the 2007-2009 recession. Originally reported by The Motley Fool.
Buffett's bank investments
Warren Buffett invested $10 billion in two banks during the 2007-2009 recession.
Goldman Sachs deal
Buffett bought $5 billion of Goldman Sachs preferred stock with 10% annual dividend.
Goldman Sachs terms
Goldman Sachs executives agreed not to sell shares before Buffett sold his.
Bank of America deal
Buffett invested $5 billion in Bank of America for preferred shares with 6% dividend.
Bank of America terms
Berkshire got warrants to buy 700 million shares at $7.14 per share.
Current holdings
Berkshire now holds $24.4 billion of Bank of America stock.
The key point
Buffett invested $10 billion in two banks when their stocks were under pressure during the 2007-2009 recession.
