Friday, October 3, 2008

America was looking up to him and hoping that he would be the savior in this dark hour. He has already named the crisis a “Financial Pearl Harbor”, so the question is that would a rational investor like him try to play Zeus in such a situation?

History of his investment approach suggests that he won’t. He had already steered clear of Lehman Brother’s distress call and Merrill Lynch too. So has been the case with most Wall Street firms where he had made clear that only the fit would survive and that’s the best for the markets in the long run. Now that he has agreed to invest in Goldman Sachs and GE, it’s not because he is clearing their tracks, but because this would mean that Berkshire Hathaway would not own stake in two of the biggest players in the Financial Global Sector. Goldman Sachs’ investment business has been impeccable and GE’s biggest play is its financial arm. Barkshire has already invested $5 billion in Goldman Sachs and $3 billion is served for GE.

This puts him on the center court of this Financial Wimbledon and Berkshire Hathaway’s grip on Wall Street after this, will be stronger than ever before.

1 comment:

Unknown said...

good one rahul. I think he his sensible to invest or not