Warren Buffett invested 300 million dollars in 5 year bonds of Harley Davidson. The investment came at a steep price for Harley which is in the form of 15% interest. The 5% increase over earlier deals with General Electric and Goldman Sachs illustrates just how difficult it is to obtain capital right now. Buffett’s investment in Harley could not have come at a better time for the company. Harley was facing a liquidity crisis as its cash position had dwindled to 600 million. Buffett’s vote of confidence in the company has sparked a 17.5% rise in Harley’s stock to $14. Harley Davidson is selling an additional 300 million in bonds to raise capital.
Make Money Investing The Warren Buffett Way
