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Warren Buffett in 2003. see http://news.ycombinator.com/item?id=304237 http://news.ycombinator.com/item?id=304237 Note that he's contributed $5 billion to the
by MaysonL 18y ago
Warren Buffett in 2003. see http://news.ycombinator.com/item?id=304237 http://news.ycombinator.com/item?id=304237
Note that he's contributed $5 billion to the bailout of Goldman Sachs, in the form of convertible senior debt, at an interest rate of 10%.
- byrneseyeview 18y agoBuffett bought callable preferred stock and warrants. Differences: preferred stock only pays a dividend when Goldman makes a profit. In a bankruptcy, preferred is ahead of common, but behind creditors. At any time, Goldman can pay Buffett a 10% premium to the issue price, and get the preferred back. If Buffett exercises his warrants, he will still own the preferred.