Goldman gets $5bn from Buffett

Berkshire Hathaway, the investment vehicle of the American financier Warren Buffett, has agreed to invest $5 billion (£2.7 billion) in Goldman Sachs. Buffett’s company will buy perpetual preferred stock with a 10% dividend and will also get warrants to buy $5 billion of common stock at $115 over the next five years. The Berkshire dividend compares with the 1.1% yield buyers of Goldman’s common shares are getting.