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Message: Re: Am I stupid,or what? -- Dmastercard -- line of the week IMO Cavedude
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Sep 26, 2008 02:41PM
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Sep 27, 2008 01:28AM
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Sep 27, 2008 07:21AM

Sep 27, 2008 07:33AM

Warren Buffet is not taking a huge risk. All though he sounds like a hero rushing to the rescue and making a gamble the reality is far from that. With his $5 billion he has negotiated a position where his stock will be a grade above the preferred. He will get 10% per year gauranteed and option to double down in 5 years for the same amount of shares at the same price as purchased last week.

His $5 bil will be the first money repaid in case of a bankruptcy and if any is left it will go to the preferred share holders. Pretty shrewd dude. The best value play here is Berkshire Hathaway.

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