Warren Buffett Exercises TARP-Era Warrants For Shares Of Goldman Sachs


How to make billions out of nothing.

Back in April, we told you how Warren Buffett’s crisis-era deal with Goldman Sachs included warrants to purchase $5 billion worth of shares, and those warrants were amended to provide for net exercise.  This means Buffett gets fewer shares but he does not have to pay for them.

Well, Buffett got the shares.  On October 1, Goldman Sachs announced that it would deliver 13,062,594 shares of its common stock to Buffett’s Berkshire Hathaway on October 4.

Date Closing Price Total Value
Oct. 1 $159.00 $2,076,952,446
Oct. 4 $156.55 $2,044,949,091
Oct. 7* $154.49 $2,018,040,147
*As of this writing.

At the time of the initial post, the underlying shares would have been worth about $1.2 billion. It appears that was a low estimate.

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