Goldman Sachs a Good Bet

Perhaps more than any living person, Berkshire-Hathaway's (BRK.A) Warren Buffett embodies the "when he talks, people listen" cachet of the old E.F. Hutton ads.  Today, Buffett announced his firm is purchasing at least a $5 billion stake in elite Wall Street investment firm Goldman Sachs (GS).  Reportedly, warrants to purchase another $5 billion of GS common stock have also been secured by Berkshire.

Predictably, this has had a favorable affect on Goldman shares in the pre-market, up over 2% before the opening bell.  This comes just days after Treasury Secretary Henry Paulson has announced a federal bailout program to rescue hard-bit Wall Street firms, of which Goldman is one on a lesser level than many of its peers.

In fact, Paulson was former chairman of Goldman Sachs, as was Clinton Administration Treasury Secretary Robert Rubin, who now appears to be a main financial advisor of presidential candidate Barack Obama.  Buffett's move seems to directly acknowledge the importance such a close proximity with former Goldman brass will have on which companies will most benefit from the Wall Street bailout.

Read the full analyst report on GS

Read the full analyst report on BRK.A