Buffett Goldman Sachs helped build Berkshire Hathaway

Published: Sep 04, 2024 Duration: 00:03:09 Category: People & Blogs

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clearly Goldman Sachs has lost reputation because of the sec's action what advice in light of your own Solomon experience you would give Goldman's board of directors and management back when we were working at Solomon together in a somewhat similar situation we had as our model get it right get it fast get it out get it over but get it right it was number one I mean you have to have your facts right because if you go out with the wrong facts you get killed and you can't redo it afterwards and but that does mean sometimes some delay you have to gather information from within your own organization and you are on to defensive I I will not I do not hold against Goldman at all the fact that an allegation has been made by the SEC and if it leads into something more serious you know then then look at the situation that time well I agree with all of that but I also think that every business ought to decline a lot of business that's perfectly legal and proper to except in other words the standards in business should not be what's legal and convenient the standard should be different and I don't think there's an investment Bank in America of any consequence that didn't take too many scuzzy customers and deal in too many scuzzy Securities I do want to point out though that our experience with Goldman goes back 44 years and during those years we bought more businesses through them than through any other Wall Street Investment Bank we've probably done more financing they have helped build Berkshire Hathaway and we trade with them as well we don't hire them as investment advisors I mean they have a big investment advisory business and if you know our reaction to that is no thanks you know we are in the business of making our own decisions but we when we trade with them they can very well be shorting to us a stock we're buying you know they can be buying for their own account some stock we're selling they do not owe us uh a divulgence of their position any more than we need to do explain to them our reasoning or what we are doing in our position we are acting there in a in a non-fiduciary capacity I mean uh and and they are operating in a non-fiduciary capacity in my view when they are trading with us now if they're working on our behalf on an acquisition or or a financing that's that's a different story uh but I would I uh I would say that we have had a lot of very satisfactory transactions with with Goldman Sachs

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