[MichaelMcG]

> This is essentially what’s happening to Warren Buffett right now who has a war chest is billions of dollars saved up during the good times that he’s ready to invest now. But it’s not as viable a strategy because the government props everyone up.

In all fairness, Berkshire Hathaway stepped in to bailout Bank of America. It obviously paid out handsomely for Buffett and Co. long term, just find it interesting to use as an example.

[aphextron]

>In all fairness, Berkshire Hathaway stepped in to bailout Bank of America. It obviously paid out handsomely for Buffett and Co. long term, just find it interesting to use as an example.

Private capital does not "bail out" companies. That's called an investment.

[MichaelMcG]

I agree, I mixed up BoA with Goldman.

Instead should have mentioned his investment in Goldman--not BoA--during the financial crisis, which he did counting on the bailout that was passed shortly after.

I don't believe it's too much of a leap to conclude that back in 2008 it was as close as possible to a joint effort between BRK/Goldman/the-financial-powers-that-be to minimize the total obligation GS would have to the Treasury from TARP funds.

Read somewhere the TARP investment was repaid 8 months later by GS with 23% interest, whereas they repurchased BRK's preferred stock for a 10% premium in 2011. BRK's warrant redemption in 2013 is another story, but easier for GS to account for long term.