Buffett Buys Goldman!

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Sep 23, 2008 8:31 pm

Looks like Warren Buffett is buying several $B in Goldman preferred’s. This will be a huge vote of confidence tomorrow.

Sep 24, 2008 10:17 am

$5 Bil in PFDs with options to buy $5 Bil in common.  I wonder what the commission would be on a $5 Bil trade?   

Sep 24, 2008 1:10 pm
Spaceman Spiff:

$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. 
Sep 24, 2008 1:24 pm

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.
Sep 24, 2008 3:40 pm

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.

Sep 24, 2008 3:49 pm

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. 
Sep 24, 2008 4:25 pm

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...
Sep 24, 2008 4:27 pm

Maybe he used Scottrade. $7 per trade, market or limit.

Sep 24, 2008 6:56 pm

i bet rodger would give him a free helicopter ride as a “bonus”

Sep 25, 2008 9:23 am

There was no commission. It is a direct placement.