Wily old Warren Buffett is looking smarter on his financial bets, as bank stocks continue to rebound.
CNBC notes that along with Buffett’s preferred-share investment in Goldman Sachs (GS) came warrants to buy 43 million shares of the bank at $115 per share. It’s not quite there yet The warrants aren’t in the money yet– the stock is at around $114 — but they’re worth more than what he got them for.
And with the preferred shares paying 10% per year, this deal is starting to look like a nice one, even if Buffett did get in “early.”
On the other hand, his GE bet is still a ways away from proving to be a winner, as his warrants there are priced at $22.25, more than double where GE currently trades.