Warren Buffett announces plan to invest $5 bn in GS

Warren Buffett's has announced plans to invest USD 5 billion in Goldman Sachs. This investment works out to nearly 9% stake in Goldman. Buffett called the credit crisis as the economic Pearl Harbour.

Buffett said "I don't try and time things, but I do try and price things. I have got a formula, bet on brains, and bet on them when it is the right type of deal. In this case, there is no better firm on Wall Street. The price was right, the terms were right and I decided to write a cheque."

Earlier, Goldman Sachs had said that it will raise at least USD 7.5 billion from Warren Buffett's Berkshire Hathaway and public investors in a bid to quell concerns that pushed up the Wall Street firm's borrowing costs. It also said it planned to sell USD 2.5 billion in common stock through a public offer.