Grouper

Does GS Recapitalization Indicate It's Time to Invest?

It is a good time to buy if you got Buffet's deal. You and I can't, unless we buy Berkshire. Look at his deal: 10% Preferred, plus immediately in the money warrants: worth 500 million at time of issue, $1B after the market reacted 10%. As soon as you can get that deal from the company that performed best on a relative basis through the current disaster, you should take it, if you can hold for 5 to 10 years. Unfortunately, you can't get that deal.