Buffett strongly defends $5 bln Goldman investment

OMAHA, Neb., May 1 (BestGrowthStock) – Warren Buffett on Saturday
launched a strong defense of Berkshire Hathaway Inc’s (BRKa.N: )
(BRKb.N: ) $5 billion investment in Goldman Sachs Group Inc
(GS.N: ).

Speaking at Berkshire’s annual meeting, Buffett said he did
not hold against Goldman the U.S. Securities and Exchange
Commission’s civil fraud lawsuit alleging the bank hid from
investors that securities backing a risky debt transaction were
chosen by Paulson & Co, a hedge fund firm betting the
securities would lose value.

Berkshire in September 2008 obtained $5 billion in Goldman
preferred shares, which throw off $500 million in annual
dividends, plus warrants to buy an equal amount of common
stock. Goldman can buy back the preferreds at 110 percent of
face value.

“We love the investment,” Buffett said. He said “I do not
hold against Goldman the fact at all” that the SEC sued, and
that it did not fall “within my category” where reputational
issues would call into question the Berkshire investment.

“If it leads to something more serious, then we will look
at the situation at that time,” he said.

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Buffett strongly defends $5 bln Goldman investment