Warren Buffett Embarassed By Goldman Sachs?

Berkshire Hathaway (BRK.A, BRK.B) the Warren Buffett wealth machine cannot be happy with Goldman Sachs.(GS) It’s $5 Billion investment earning 10% dividends just lost $1 Billion in value. Ron Olsen a director of Berkshire and supposedly speaking with Warren Buffett’s acquiescence just days before the SEC filed civil charges, put his foot in his mouth in defending integrity.

The 10% dividend is problematic. This is a superior return which other investors could not negotiate. Warren Buffett got a really big piece of pie from Goldman Sachs. Goldman Sachs is generating huge returns and huge personal bonuses over the dead financial bodies of sophisticated yet seemingly stupid investors. Warren Buffett was paid for risk. He took what he thought was a big fat pitch.

Goldman is in the fight of its life. As more comes to light many clients will curtail if not stop using Goldman Sachs. No one will want to be tainted by association. No one will trust. Everyone will second guess. The competition cannot believe the luck of this Black Swan as they try to pick away at Goldman and steal some damn good business.

Did Warren Buffett make the worst investment of his life? Is the $5 Billion at risk? Remeber the market is a manic depressive entity.

Disclosure: No position in this stock