Berkshire Hathaway sold 84 per cent of its Goldman Sachs stock in the first quarter
Warren Buffett was willing to stand by Goldman Sachs Group Inc.’s side during the last economic crisis, at least for the right price. Now, he’s bailing out just as the pandemic throws the U.S. economy onto uncertain terrain.
“He has this historical relationship with Goldman, so maybe there’s some sentimental value,” said David Kass, a professor of finance at the University of Maryland’s Robert H. Smith School of Business. “But of course, Buffett’s primary concern is efficient allocation of capital.” Buffett’s retreat followed Solomon’s rise to the top job in October 2018. An investment banker by trade, Solomon has been pushing the firm deeper into less-familiar terrain with transaction banking and deposit gathering, making it look more like its rivals. Buffett has rarely discussed Solomon in public.
Still, Buffett has been willing to praise investment bankers he admires. He frequently turned to Byron Trott, a former Goldman Sachs banker who later founded BDT Capital Partners, for acquisitions, noting that Trott “earns his fee.”
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