Behind every billionaire there is a story!

Buffett Buys Goldman Sachs Stake in `Economic Pearl Harbor’

Billionaire investor Warren Buffett, who tells investors to be “greedy when others are fearful,” put up $5 billion for Goldman Sachs Group Inc. after the firm lost 40 percent of its market value in the past year.Buffett’s Berkshire Hathaway Inc. is buying a stake in Goldman after three of the investment bank’s biggest competitors went bankrupt or were forced into emergency sales. He has already agreed to spend at least $25 billion this year to acquire companies, finance buyouts and purchase securities for Omaha, Nebraska-based Berkshire.

“When the price gets right, you have to get in,” said Gerald Martin, a finance professor at American University in Washington who has studied Buffett’s investment history. “The pendulum may finally have swung too far the other way.”

Buffett, 78, has frequently scolded Wall Street for shoddy accounting and risky investments. By taking a stake in New York- based Goldman, he’s investing in the most profitable U.S. investment bank a week after the Lehman Brothers Holdings Inc. went bankrupt and Merrill Lynch & Co. sold itself to Bank of America Corp.

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http://www.bloomberg.com/apps/news?pid=newsarchive&sid=abAOmRRk9w10