Q about Goldman buying back shares from Warren Buffet

[Ghiddy]

http://www.businessinsider.com/gold...rred-shares-sold-to-berkshire-hathaway-2011-3

Buffet bought $5 Billion of preferred stock during the start of the financial crisis. Now they say GS is buying it back, with a $1.64B fee. What is that fee, is it just the difference in price of school between when Buffet purchased, and now?

 

[Blackjack200]

Goldman pays 10 percent interest on those preferred shares, bringing the buyback to $5.5 billion, and also will pay a one-time dividend of $1.64 billion.

dividends must be paid on preferred stock before they can be paid on common stock. Buffet just made $2.14 billion from a $5 billion investment in 3 years.

 

[FallenHero]

dividends must be paid on preferred stock before they can be paid on common stock. Buttet just made $2.14 billion from a $5 billion investment in 3 years.

That is why he is Warren Buffet, and we are posting on AT.

 

[Blackjack200]

That is why he is Warren Buffet, and we are posting on AT.

Yeah, he'd have to be 19 years old with a supermodel gf to post here.

 

[Safeway]

Jesus. Buffet is amazing. Takes money to make money.

 

[Ghiddy]

OK, but what's the actual fee? Where does that come from?