Warren Buffett invests $5 Billion in BOA

myob

15 years ago

Yeee... haw! (Oh well, hit one out of the three)

NWSA, BAC, NMS

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hardraysnight 15 years ago

I think your headline should read 'Warren Buffet Spends 5 Million in Bore

Just a matter of time before he is on Entertainment Tonight
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DazedandConfused

15 years ago

For that kind of dough - he should be able to call it:
"Bank of Buffett"..."Changes in Platitudes - Changes in Gratitudes"
"Bank of America" isn't doing it any good...
What's Ol' WB got up his sleeve?

If it changed to "Bank of Buffett" - we could call it "Bob" - much friendlier...

(Parrot Heads get Free Checking!

)

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chuckwells

15 years ago

Well why not, if BOA has trouble it will get an Obama bailout.

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Thomas Wilkinson

15 years ago

Originally Posted by chuckwells

Well why not, if BOA has trouble it will get an Obama bailout.

The bank bailouts were 1. A Bush (Cheney) initiative, 2. Had to be done to ward off a much worse recession than we had, 3. Turned out to be an excellent move. The government has nearly broken even on the money. Saved the U.S. monetary system, saved the U.S. auto industry, saved a couple of hundred thousand jobs directly and perhaps a million jobs indirectly. If you would like to credit President Obama with a brilliant move like that go ahead. TARP had already passed before he took office.

Thomas

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Kurt

15 years ago

Originally Posted by Thomas Wilkinson

The bank bailouts were 1. A Bush (Cheney) initiative, 2. Had to be done to ward off a much worse recession than we had, 3. Turned out to be an excellent move. The government has nearly broken even on the money. Saved the U.S. monetary system, saved the U.S. auto industry, saved a couple of hundred thousand jobs directly and perhaps a million jobs indirectly. If you would like to credit President Obama with a brilliant move like that go ahead. TARP had already passed before he took office.

Thomas

I believe it was Bush that bailed out Wall Street and Obama that bailed out the auto industry. And both were good investments, IMO.

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Thomas Wilkinson 15 years ago

Originally Posted by Kurt

I believe it was Bush that bailed out Wall Street and Obama that bailed out the auto industry. And both were good investments, IMO.

In September of '08 the auto industry asked for 50 Billion in "bridge loans" to attempt to avoid bankruptcy. Congress initially approved 25 billion and a month later President Bush authorized 17.6 billion to be distributed in January and February of '09. There is an excellent time line article on Wiki that gives all the details. The two bankruptcies didn't occur until later in the spring of '09.

Thomas
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yukon

Banned 15 years ago

When you have that much money, you don't ask "How much will I get in return?", you tell them how much you'll get!

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David Sneen

15 years ago

Whether or not this was a good investment remains to be seen. But one could have done well copying what Warren Buffett did -in the last 5, 10,20, or 30 years. I would have a difficult time arguing with him.

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Patrician

15 years ago

This is a real winner - thank you Warren Buffet (I hope)

When I went to work for BofA Technology & Operations 12 years ago the stock was above $70 a share. Today it is in the $7 range (and that is up from where it has been recently).

You can hate big banks all you want to but they employ thousands of people -- and in the case of what was the largest bank in the US, a couple of really stupid deals sent them down the tubes - 2 CEOs in a row made disasterous decisions. They were canned and punished with millions in their golden umbrellas. tsk tsk.

In the meantime innocent stockholders and employees (pensions, jobs, etc) took a bath.

Reuters: "The idea to invest in Bank of America apparently came to Buffett while he was taking a bath. Lets hope individual investors who follow Buffett's lead don't wind up taking one too."

I have wondered whether my pension fund will even have any money in it by the time I need it - kind of braced for the worst - but I guess it is 'never say die' - this could really mean something good for hundreds of thousands of innocent middle class working people that have been affected.

The new CEO is still cutting thousands more jobs and cutting costs for operations - so that, although bad for the current employees can help to bring the bottom line back up to where there is still oxygen...

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Thomas Wilkinson

15 years ago

Originally Posted by Patrician

This is a real winner - thank you Warren Buffet (I hope)

When I went to work for BofA Tech & Ops 12 years ago the stock was above $70 a share. Today it is in the $7 range

On a good day it might actually be worth about a third of that. It should be noted that WB bought preferred stock, not common, in a "to big to fail" bank. Preferred stock pays a 6% dividend as opposed to the one half of 1% that common stock pays. WB, in effect, bought a government guaranteed CD at 6%. He can also collateralize the stock (use it like cash) to purchase even more companies and still collect the dividend. (Mr. Buffet doesn't believe in margining stocks). He also must certainly be anticipating a rise in the stock price.

Thomas