GS - After Ditching Goldman Sachs Warren Buffett Is Buying This Investment Bank
Following the start of the pandemic in 2020, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) , the large conglomerate run by legendary investor Warren Buffett, didn't waste any time in disposing of its stake in the investment banking powerhouse Goldman Sachs (NYSE: GS) .
Following the sale, the move looked to be a massive mistake, as all of the market volatility boosted Goldman's business through the roof in 2021 thanks to elevated sales and trading to equity and debt underwriting. Berkshire's decision looks to be a little better this year as underwriting activity has significantly declined, although Goldman's stock remains well above pre-pandemic levels.
But now Buffett seems ready to dip his toe back into the investment banking business. In the third quarter, Berkshire disclosed in a regulatory filing that it has taken a very small stake in the much smaller investment bank Jefferies Financial Group (NYSE: JEF) . Let's take a look at what Buffett and the rest of the Berkshire team are thinking here.
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After Ditching Goldman Sachs, Warren Buffett Is Buying This Investment Bank