Goldman Sachs and Berkshire Hathaway Amend Warrant Deal (GS, BRK-A)

Goldman Sachs and Berkshire Hathaway Amend Warrant Deal (GS, BRK-A)


Goldman Sachs Group, Inc. (GS) and Warren Buffet’s Berkshire Hathaway (BRK-A) came to an agreement on Tuesday to amend its financial crisis-era warrant deal that will allow Goldman to pay Berkshire with stock, rather than cash.

According to the previous deal, which was made during the financial crisis, Berkshire had the right to purchase more than 43.5 million shares of Goldman Sachs at an exercise price of $115 per share before October 1, 2013.

However, the deal stated that Goldman would have had to pay Berkshire in cash for the difference between its current stock price, 27% above the exercise price, and the exercise price.

The amended deal will allow Goldman to settle the difference with stock. This cements Berkshire’s place as a long-term investor in Goldman Sachs.

Goldman Sachs shares were up $1.39, or +0.94%, during Tuesday morning trading. The stock is up +14.23% over the past year.

The Bottom Line
Shares of Goldman Sachs (GS) have a dividend yield of 1.36% based on Tuesday’s intraday trading price of $147.50 and the company’s annualized dividend payout of $2.00 per share.

Goldman Sachs Group, Inc. (GS) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Free Updates

Join over 100,000 investors who get the latest news from

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today