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Berkshire buying stake in Goldman Sachs

Warren Buffett's Berkshire Hathaway Inc. is investing at least $5 billion in Goldman Sachs Group Inc.
/ Source: The Associated Press

Warren Buffett's Berkshire Hathaway Inc. is investing at least $5 billion in Goldman Sachs Group Inc.

The announcement Tuesday from Goldman involves preferred stock that carries a dividend of 10 percent.

Berkshire also will receive warrants to purchase $5 billion of Goldman's common stock with a strike price of $115 per share. The shares are exercisable at any time for a five-year term. Goldman's shares closed at $125.05 Tuesday, up $4.27.

Goldman is also raising at least $2.5 billion in a public offering.

At last report, Berkshire had total assets of nearly $278 billion, including significant stakes in companies such as Wells Fargo & Co., American Express and the Washington Post Co.