Today’s Wall Street Journal reports that as recently as in March, Warren Buffet wrote to his shareholders expressing disdain for Wall Street firms, “You only learn who has been swimming naked when the tide goes out–and what we are witnessing at some of our large financial institutions is an ugly sight.”

And yet, today’s WSJ reports that Buffet will invest $5 billion in Goldman Sachs, and also has an option to invest $5 billion more at a later time. What is Buffet’s rationale?

Actually, Buffet is just demonstrating his great leadership skills. In particular, in the context of leadership intelligences, Buffet’s decision reflects his “analytical intelligence”. Think about it. Why Goldman and not any other company? Why now and not anytime sooner or later?

Here are a few thoughts: About timing. Buffet knows that the financial markets need a shot in the arm, and as a thought leader, he is in the best position to provide that much-needed confidence by investing in a company. About Goldman. While not safe from the crisis in the financial markets, Goldman has avoided any mortgage-related crisis. And although profits have been declining, the firm has been steadily showing a quarterly profit. Now, with Buffet’s investment, Goldman can raise additional money from selling stock to the public. The boost Goldman is getting has already been demonstrated in the 6.5% uptick in its share price yesterday. The WSJ article notes that the deal “will give Mr. Buffet a healthy stream of cash and potentially ownership of 10% of Goldman.” Win-win. And of course, a desperately-needed vote of confidence in the financial institutions.

Isn’t that leadership?