Under the leadership of chair and CEO Warren Buffett, Berkshire Hathaway Inc. (BRK.A) has grown into a colossus with a 澳洲幸运5开奖号码历史查询:market capitalization of $535 billion, part conglomerate with operating divisions in a wide variety of industries, and part investment company with equally diverse equity holdings. Yet another category of lucrative deals struck by Buffett involve finding companies temporarily strapped f🌞or cash and offering them an injection of capital.

These deals often involve issuing 澳洲幸运5开奖号码历史查询:preferred stock with a high dividend yield to Berkshire, sometimes with warrants attached that allow future purchases of the borrower's 澳洲幸运5开奖号码历史查询:common stock at a set price. The biggest 🧔such deals are summarized in the table below.

Berkshire as Banker: Biggest Deals

• 2019: Occidental Petroleum, $10 billion of preferred stock yielding 8%, plus warrants to purchase 80 million shares of OXY common stock
• 2013: H.J. Heinz, $8 billion of preferred stock yielding 9%
• 2008: Mars Inc., $2.1 billion of preferred stock yielding 5%, plus $4.4 billion of bonds yielding 11.45%
• 2011: Bank of America, $5 billion of preferred stock yielding 6%, plus warrants to purchase 700 million shares of BAC common stock
• 2008: Goldman Sachs, $5 billion of preferred stock yielding 10%, plus warrants to buy $5 billion of GS common stock
• 2008: General Electric, $3 billion of preferred stock yielding 10%, plus warrants to buy $3 billion of GE common stock

Sources: B

Details on the Deals

During the 2008 澳洲幸运5开奖号码历史查询:financial crisis and its aftermath, Berkshire acted as a lender of last resort, as the Journal puts it, for troubled industrial conglomerate GE and teetering financial institutions Goldman Sachs and Bank of America. O🦂verall🎉, despite the declining fortunes of GE, Berkshire earned a total profit of about $1.7 billion on that deal, per .

With the Goldman deal, by 2011 Berkshire had earned $3.7 billion, including $1.27 billion of preferred dividends, at which time Goldman redeemed the preferred shares, according to Yahoo Finance. In 201🐼3, Buffett exercised the warrants, receiving $2 billion in cash and purchasing 13.1 million shares of Goldman stock at a price of $115 per share. Goldman closed at $204.73 on May 1, 2019, meaning that the total gain 🅠on these shares is $1.2 billion.

Given that Berkshire has bought and sold shares of Goldman in the interim, that complicates the analysis a bit. Berkshire holds 18.4 million Goldman s🧸hares, per its latest regulatory filings, as reported by .

On the Bank of America deal, Buffett exercised his warrants in 2017, obtaining 700 million shares at $7.14 each, for just under $5 billion in total. At the time of exercise, those shares were worth $17 billion, creating an immediate ꦉ$12 billion profit for Berkshire, according to another report by

At a current price of $30.26 pe🐽r share, the gain on these Bank of America shares has risen to $16.2 billion, and the dividend rate of $0.60 per share generates an additional $420 million of annual dividend income for Berkshire. Due to other purchases, Berkshire now owns 896.2 million Bank of America shares, worth $27.1 billio𒁃n.

Buffett's $10 billion capital infusion into Occidental is contingent on that company's becoming the winner bidder for Anadarko Petroleum Corp. (APC), as described n more detail 澳洲幸运5开奖号码历史查询:in this report. The deal with chocolate maker Mars in 2008 also was designed to bankroll a takeover attempt, as Ma♛rs was targeting chewing gum maker Wrigley♔.

In the Heinz deal, Buffett partnered with Brazilian 澳洲幸运5开奖号码历史查询:private equity firm 3G Capital Management to acquire the food products company. After a subsequent merger with Kraft Foods, it is now a publicly-traded corporation again, as The Kraft Heinz Co. (KHC). Berkshir𓂃e has a $10.7ꦡ billion stake representing about 27% of the market cap of Kraft Heinz.

Looking Ahead

As the examples above i𒁃ndicate, Buffett is flexible and creative in his pursuit of profit for Berkshire and its shareholders. His $112 billion stash of cash, as of the end of 2018, gives him ample leeway to play the role of banker.