The “Oracle of Omaha” Warren Buffet has confidence in Goldman Sachs and don´t intend to sell his $5 billion invested there.
Buffett speaking to students from the Kansas University School of Business, May 6, 2005
Berkshire Hathaway ’s Warren Buffett, who injected $5 billion into Goldman Sachs Group Inc in 2008, remains comfortable with his investment after regulators sued the bank for fraud, said Berkshire Director Thomas Murphy.
“He’s not concerned with the investment at all,” Murphy, 84, said in a Bloomberg Television interview, citing a telephone conversation with Buffett, Berkshire’s chief executive officer. “He has to see what’s going to happen on it, but I think he has great confidence in Goldman,” Murphy said. The two men spoke after the Securities and Exchange Commission announced its lawsuit on April 16, Murphy said.
Buffett, a longstanding Wall Street critic, has supported a firm that’s become a lightning rod for politicians and people who feel cheated by the recession. Public regard for Goldman Sachs, the most profitable firm in Wall Street history, has plummeted in the year and a half since Buffett, 79, provided the company with capital in the depths of the financial crisis.
“I think he’s awfully secure” in Berkshire’s Goldman Sachs holdings, said Glenn Tongue, a partner at T2 Partners LLC, which invests in Buffett’s firm. “He assessed the culture of Goldman Sachs when he made the investment. He had known the company for decades.” READ MORE HERE.-