Buffett Buys Goldman!
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Looks like Warren Buffett is buying several $B in Goldman preferred’s. This will be a huge vote of confidence tomorrow.
$5 Bil in PFDs with options to buy $5 Bil in common. I wonder what the commission would be on a $5 Bil trade?
I know of a guy that was a regular Joe Schmoe broker making around $1MM a pop selling blocks of Paul Allen's MSFT stock a while back. Not a bad gig if you can get it. The guy just so happened to strike up a conversation with Allen on a plane, that's how they met.$5 Bil in PFDs with options to buy $5 Bil in common. I wonder what the commission would be on a $5 Bil trade?
Even .1% would be $5mm
Isn't this some sort of institutional trade? I may be naive, but I doubt this goes through a regular broker.So assuming $25 par pfds that would mean 200mm shares at $0.50 a share seller’s concession that would be 100mm gross, not a bad days work. My guess is he was able to work a better deal on the commission than that.
Yeah, I wouldn’t expect that Buffet would give away $100mm on a stock trade. It’s just something fun to think about what it would be like to place a trade like that and then move to Cabo, or Italy, or HI, or AK, or Pebble Beach, or…
Whatever it was I'll be it was more than the $500 I made on a stock trade this morning.Buffett said this:
"Buffett has credited Byron Trott, a Goldman banker, with helping Berkshire complete at least four acquisitions, including the Marmon deal. Trott ``understands Berkshire far better than any investment banker with whom we have talked and - it hurts me to say this - earns his fee,'' Buffett wrote to shareholders in Berkshire's 2003 annual report."
Link to story: http://www.bloomberg.com/apps/news?pid=20601087&sid=axN8Gl5_fsxA&refer=home Whatever his fee was, it would be enough to buy me some new shoes...