Buffett & Goldman Sachs

Even Warren Buffett is having a hard time in this environment. The veteran value investor has seen his stake in Goldman Sachs crash by 38% since October 23, when he announced the purchase of $5 billion worth of preferred shares when the common was trading around $130. At the time, just two weeks ago, many believed Buffett was getting a screaming deal for a company whose value had already fallen by half in the prior year, especially when you added in his 10% dividend and warrants giving him the right to buy warrants for $115. Yet shares are now trading at $71, making those warrants irrelevant. -- Jon Markman 11/10/08