What Does Warren Buffett’s Investment in Goldman Really Mean?

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Jose Reyes may need to ward off evil spirits this week.
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Blogger Jeff Matthews, hedge-fund manager, blogger, and professional Buffettophile, analyzes Warren Buffett's decision to buy $5 billion of preferred stock in Goldman Sachs: "What we think he’s saying is that the $700 billion bailout plan being pushed down the country’s throat by Hank Paulson and Ben Bernanke — two men who both had seats at the bar while the lethal subprime mortgage cocktail was being concocted by Wall Street — is for the birds. Sure, Buffett’s telling CNBC this morning that without the Paulson/Bernanke plan he might not be making this investment. And yes, he’s saying a Paulson/Bernanke plan would keep us from going over the edge. But what else might you expect a man whose company, Berkshire Hathaway, has sold S&P Index put options with a notional value of $39.878 billion dollars as of June 30, 2008, to say? As is always the case with Warren Buffett, it pays to look at what he’s doing — not what he’s telling CNBC." [Jeff Matthews Is Not Making This Up]