With all the turmoil going on in the financial world, you dont expect an investor to be richest person in the world, right? But Warren Buffet has proved that wrong as today Forbes unveiled survey results which shows Buffet as the world's richest person overtaking the fellow American, Bill Gates.
Warren Buffet's wealth is estimated at USD58 billion compared to USD55.5 Billion for Bill Gates. Few days back, Warren Buffet did a deal with Goldman Sachs, the investment banking company where he invested USD5 Billion as preference share capital at a guaranteed dividend of 10%. Buffet is known for his hard bargains and I think he has done the same with Goldman Sachs, which was desperately looking for fresh capital as well as an highly influential investor who can bring back the credibility to the Investment Bank. He has also been issued warrants which can be converted in the next 5 years at USD115 per share, again a very attractive price.
Warren Buffet has taken a very bold step in acquring a stake in Goldman Sachs and with subsequent developments in the financial markets globally, we need to wait and watch how Buffet's pick is performing.