Warren Buffett isn't a big fan of Wall Street money managers, but he does love one of the Street's best-known names.
Buffett's Berkshire Hathaway will probably become a top-10 shareholder of Goldman Sachs in a deal revealed today.
Back in September of 2008, at the height of the credit crisis, Berkshire essentially loaned Goldman $5 billion at an interest rate of 10 percent a year. (That money was repaid in 2011.)
As part of its vote of confidence, Berkshire also received warrants giving it the right to buy another $5 billion worth of common stock at $115 per share anytime in the following five years. That purchase would work out to over 43 million Goldman shares — roughly a 10 percent stake in the company.
With Goldman shares now around $145, the below-market purchase price would generate a paper profit for Berkshire of around $1.3 billion.