Warren Buffet invested $5 billion in Goldman-Sachs today... there is NO crisis

[scheming daemons]

Do you think Buffet would simply throw $5 billion (yes.. with a "B") down the toilet?


The bailout is a ruse. Either that, or Warren Buffet is a financial idiot.

I know which one I believe.

[Extend a Hand]

1. one other possibility

Warren Buffet is already in the process of giving a substantial portion of his fortune. Maybe he figures he has a better shot at saving the banking system than the fed?

[onenote]

2. Did you read what Buffet said about his decision?

"If I didn't think the government was going to act, I would not be doing anything this week," Buffett told CNBC Wednesday morning. "It would be a mistake to be buying anything now if the government was going to walk away from the Paulson proposal. Last week will look like Nirvana if they don't do something."

[SteppingRazor]

3. I think you're overlooking a couple options.

There's also the possibility that he's plunking down $5B on GS knowing that the bailout will come through and the stock will skyrocket.

There's also the option that, with the stock trading at about $120/share this morning and having previously hit heights well over $200/share, he's banking on the idea that, while there is a crisis, the worst of it for GS is over, and that the bank is poised for a rebound.

And in any case, while it's a pretty big number, it's actually only a tiny share of GS stock -- most of the stock is still privately held by GS employees.