On 23 September 2008 in the midst of a historic crisis in the U.S. financial markets investing Warren Buffett of Berkshire Hathaway’s $ 5 billion Goldman Sachs Goldman CEO Lloyd Blankfein, said: “We are delighted that the face of our longstanding relationship, Warren Buffett, who probably world’s most admired and successful investor, has decided to make such a significant investment in Goldman Sachs. ” He added that the deal “will further strengthen our strong capitalization and liquidity,” about … Read more »

On 23 September 2008 in the midst of a historic crisis in the U.S. financial markets investing Warren Buffett of Berkshire Hathaway’s $ 5 billion Goldman Sachs Goldman CEO Lloyd Blankfein, said: “We are delighted that the face of our longstanding relationship, Warren Buffett, who probably world’s most admired and successful investor, has decided to make such a significant investment in Goldman Sachs. ” He added that the deal “will further strengthen our strong capitalization and liquidity,” calls Buffett’s decision “a strong confirmation of our customer base and future prospects.” For his part, Buffett called Goldman “an extraordinary institution,” with “… a unique global franchise, a proven and deep management team and the intellectual and financial capital to continue its track record of outperformance.” This case provides an opportunity to Goldman’s decision to raise capital, the cost of Buffett’s investment company, and the decision by Warren Buffett to make the investment, all evaluated in the context of a deep crisis, which have the usual metrics for such altered decisions.
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from
Clayton Rose,
David Lane
Source: Harvard Business School
22 pages.
Publication Date: May 27, 2009. Prod #: 309069-PDF-ENG
Going to the Oracle: Goldman Sachs, September 2008 HBR case solution