Warren Buffett and Berkshire Hathaway (BRK:NYSE) has announced plans to purchase a minimum of 5 billion shares of preferred stock of Goldman Sachs (GS:NYSE). Buffett, who is a major shareholder of Coca Cola (KO:NYSE), claimed he would buy shares of rival Pepsi (PEP:NYSE) before ever returning to Wall Street again. Buffett had come to the aid of Salomon Brothers in 1991, profiting nicely on his investment. Apparently, Buffett found the current value of Goldman appealing and structured a deal to his liking. Good!Amongst all the carnage on Wall Street, someone with a high level of credibility has now taken stake in a financial firm, giving indication of value at levels in this vicinity. Potentially, other investors previously gripped by fear can gain confidence and make investments, something the market needs to have any chance of moving higher.
Leadership in equities and individual fortitude is practically non existent in this environment, but now comes the Oracle of Omaha. From his desk in downtown Omaha, perhaps Warren Buffett has given us, and the market, that leadership.
Buffett will be on Squawk Box on CNBC with Becky Quick Wednesday morning at 8AM. You know where to find me!I AM CURRENTLY A SHAREHOLDER OF COCA COLA AND BERKSHIRE HATHAWAY CL B
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