10% dividend yield on Goldman Sachs Preferred Stock

The guru has done it again. Another excellent deal with Mr Market presenting him a fine bargain by virtue of the credit crisis in the markets today. With the goldman sachs deal sealed Warren is getting 500 million of annual dividends on an investment of 5 billion in Goldman preferred stock. It does'nt get any better than that when one could invest at a 10% dividend yield and at the same time get warrants that are excercised at a strike price of $115.

With the franchise value of the Goldman still intact and growing, this investment might prove to be One of Warren's most shrewd deals ever with him potentially getting 10% of the company of the warrants are excercised.

For more, go to:

http://seattlepi.nwsource.com/business/1310ap_goldman_sachs_berkshire.html

Better and better,
Lucas