Quote · My First Million
How the Ex-Goldman CEO actually invests his own money
Where this was said
Lloyd breaks down his portfolio
At 19:15 · chapter starts 15:04
This is arguably the episode's most gripping set piece. Blankfein walks through how Warren Buffett came to invest in Goldman Sachs during the darkest hours of the 2008 financial crisis [1] — Lloyd Blankfein "At the height of the 2008 financial crisis, Warren Buffett called Blankfein and agreed to put $5 billion into Goldman as preferred stock. H…" 15:57 . Goldman didn't need the money — they had capital. What they lacked was market confidence at a moment when similar institutions were failing or in distress. When Blankfein tried to walk Buffett through everything he was worried about before the deal, Buffett replied simply: 'I know you well enough to know that you worry enough for the both of us.' He then compared the $5 billion to 'not even a bad hurricane on the East Coast' for Berkshire's insurance operations, put the number in stark perspective, and left to take his grandchild to Dairy Queen. No written contract. Buffett later asked only for a verbal commitment that Blankfein wouldn't sell his own shares until Buffett sold his. The story is a masterclass in reputation, trust, and what capital actually signals in a crisis.
At the height of the 2008 financial crisis, Warren Buffett called Blankfein and agreed to put $5 billion into Goldman as preferred stock. His response to a request for due diligence? 'You worry enough for the both of us.' He then left to take his grandkid to Dairy Queen.
During the 2008 financial crisis, Warren Buffett invested $5–10 billion in Goldman Sachs via preferred stock, agreed over a phone call with no written contract.
Goldman Sachs had the capital to survive 2008. What they lacked was credibility in a panicked market. Buffett's investment was a confidence signal that no amount of self-assertion could have provided.
