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Buffett's Crisis-Lending Haul Reaches $10 Billion


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Billionaire Warren Buffett tossed lifelines to a handful of blue-chip companies during the financial crisis. Five years later the payoff on those deals is becoming clear: $10 billion and counting.


Mr. Buffett approached that figure after he collected another hefty payment last week, bringing to nearly 40% the pretax income on his crisis-era investments, according to a Wall Street Journal analysis.

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I have a question on these deals.


Looking back at the crisis, one of the biggest risks of common stock was that you get heavily diluted through a very expensive capital raise.  Equity raises help prefs right?  Because you only hurt the common holders correct?  Also, did his warrants have anti dilution clauses?


If so, this is probably an even better strategy than I thought because then he is removing one of the biggest risks in investing during the crisis.


Also, did anyone calculate his IRR on these?  If not, I can probably do it.

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