Berkshire Hathaway Inc. will buy $5 billion worth of perpetual preferred stock from Goldman Sachs Group Inc. in a private offering, Goldman Sachs announced Tuesday.

The preferred stock will pay a 10% dividend and will be callable any time at a 10% premium. Berkshire will also receive warrants to purchase $5 billion worth of common stock within five years and a strike price of $115 per share.

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