Berkshire Hathaway Inc, an insurance conglomerate ran by Warren Buffett, recently put plans in progress to invest $5 billion in currently struggling Goldman Sachs, a large global bank that specializes in investment. Goldman also acts as money manager/financial advisor for many types of clients: large corporations, govnerments, and wealthy individuals.

With Berkshire´s $5 billion investment, they will be acquiring perpetual preferred stock, which has a dividend of 10% and can be callable with a 10% premium. They will also be issued warrants to purchase $5 billion in common stock, at a strike price of $115 each. These rights can be used at any time over a 5 year period. Goldman will also be raising $2.5 billion in additional funding by selling common stock with a public offering. On Tuesday, their shares were up $4.27, closing at $125.05.

Berkshire at last, reportedly had a total asset count of $278 billion, with stakes in American Express, the Washington Post Co., and Well Fargo & Co., Berkshire also owns HomeServices of America, Inc, a real estate brokerage ran in over 19 states.