Warren Buffett and his Goldman Sachs investment

Warren Buffett had made Goldman Sachs investment of 10 billion dollars.With a guaranteed return of ten percent, which is a nice return in today's market. He gets also warrants to buy Goldman common shares at $115 with in five years which itself is worth currently at 2 billion with Goldman share price at $161.

We know this has been a good investment for Buffett and his company.No wonder he is a master communicator and shrewd businessman.He is master at buying low priced good valued products. His return on Goldman Sachs is 111 PERCENT ANNUAL.Federal government did not do that bad either at a return of 22 percent as these investments did not go belly up.Part of the funds received by Goldman was paid through TARP to other companies.So we might have paid this return of 22 percent in unrecoverable payment to other institutions.

Now let us look at the criticism of Goldman by Paul Krugman the professor Nobel laureate.He has criticised the Goldman . Heading for his article was Joy of Sachs as nation being porked by Goldman business model and we are allowing it to do so .I hope Obama administration is consulting him in finding solutions to this problem.

Last week in a news item was reported that how fast computers favor investment houses who make money in day trading by giving them advantage over small investors.I have never understood how nation benefits by allowing these companies allow trading in the share many time in the same day. Stock market is to create liquidity in the equity markets and not to create unnecessary volatility.

NOW THE FINAL QUESTION; WHAT IS THE MORAL DUTY OF PEOPLE LIKE mr BUFFETT TO INVEST WITH WELFARE OF AMERICA IN MIND.

He can take a stand much more magnanimous than any other investor as he does not need to prove anything and money is just to keep the score.