Follow the Money Leader - Warren Buffett
The bank sector, including Goldman Sachs has not had a great run in the past few weeks. The U.S. Government’s proposed $US 700 billion rescue plan is an attempt to stabilize the market. However, Mr Buffett’s, Berkshire Hathaway holding company, to purchase Goldman Sachs preferred stock, with a 10 per cent annual interest rate gave the bank sector a renewed confidence. News.com.au reported. Goldman Sachs is currently the fourth largest commercial bank holding company in the Unites States.
There is a loyal following that observes and follows the investment practices of Mr. Buffett. This may be a sign that the financial down-turn may begin to turn. With the proposed 700 billion U.S. bailout and all the write-downs we hope Mr. Buffett is the inspiration for renewed confidence in this ailing market.
