Warren Buffett Wins Big With Bank Of America Stake
Warren Buffett has always said be fearful when others are greedy and greedy when others are fearful. In August of 2011 when everyone was running away from Bank of America's stock Buffett bought $5 billion worth of preferred Bank of America stock at $7.14 with a 6% annual dividend yield. He also got warrants to buy $5 billion worth of Bank of America at $7.14. Now 16 months later Bank of America is trading at $10.56. Between the preferred stock, the dividends, and the warrants, Buffett's investment is now worth around $5.3 billion more than it was 16 months ago. I remember back when Buffett made this deal the the message boards were full of people saying he was senile and they were sure he was going to lose his money. Looks like Buffett is laughing all the way to the bank.