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Berkshire to GS: "I Got $5 Billion, but Its Gonna Cost Ya"

Discussion in 'Finance & Banking' started by Tropo, 24th Sep, 2008.

  1. Tropo

    Tropo Well-Known Member

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    Berkshire to GS: "I Got $5 Billion, but Its Gonna Cost Ya"

    • Goldman Sachs pays a fat dividend to Berkshire Hathaway of 10% on $5 Billion dollars -- that's $500 million per year. And, since this is a preferred, it gets paid out of net income in after tax dollars dollars. Ouch.
    • Goldman gets the right to call the preferred at any time at a 10 percent premium. Ouch again.
    • Buffett gets $5 billion worth of warrants with a strike price of $115, or about 43.47 million shares. The warrants are good for only 5 years.

    more.... The Big Picture
     
  2. Billv

    Billv Getting there

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    Tropo

    I found the first article very interesting
    "Paulson's Plan Wlll Set New National Debt Records"
     
  3. Glebe

    Glebe Well-Known Member

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    So what's the plan for paying down the debt? America needs to get out of Iraq, and close their military bases around the world. Unless they shrink their military and NASA budgets by 75% they'll never return to prosperity.