Buffett's Goldman Deal
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A story about how Warren Buffett's investment in Goldman Sachs during the 2009 financial crisis wasn't a simple stock market purchase, but rather a special backroom deal.
"I was at Goldman in 2009 when Buffett did the deal to invest a bunch of money in Goldman to stabilize it. It was not a public market deal. Buffett didn't go out to the street and buy a bunch of stock - he had a ton of warrants and options on top of it. It was a total backroom deal, and that's the only reason he did it because he basically had this huge asymmetric risk where he had a bunch more upside than he had downside.
This is why if you don't have an unfair advantage, if you can't write down why specifically you're going to win instead of somebody else, you should be really careful speculating on stocks because the big boys don't really do it that way."
Codie Sanchez
Content creator helping others ride the silver tsunami
Codie's played in a lot of sandboxes as a building an investment firm in latin america, a venture fund focused on small business infrastructure, a media business and a small business holding company.
On her Contrarian Thinking: Contrarian Thinking’s mission is to bring more humans into financial freedom, making us fluent in the language of money. Civilize the mind. Make savage the body. Build the bank account.