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Berkshire expects a $1.25 billion gain on Goldman deal

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Warren Buffett’s Berkshire Hathaway Inc. said it expects a $1.25 billion pretax gain in the second quarter and lower investment income in future periods after its $5 billion investment in Goldman Sachs Group Inc. was redeemed, Bloomberg reported. Berkshire was paid $5.5 billion for the securities on April 18, the Omaha-based company said in its first-quarter earnings report. The payment by Goldman Sachs includes the $5 billion Berkshire invested in 2008 and a 10 percent premium. Goldman Sachs paid dividends of 10 percent before the redemption. Buffett is accumulating cash and seeking acquisitions as almost record-low interest rates limit fixed-income returns, Bloomberg said. The company’s cash rose to $41.2 billion on March 31, the highest quarter-ending total since 2007.