Bank of America’s stock price just broke into the embarrassing sub-$5 stock basement. Somewhere in Omaha, are alarm bells going off?
Yes, Bank of America’s stock swoon is dragging down America’s wisest investor, Warren Buffett, who now is about $1.5 billion underwater on his BofA common-stock warrants.
bac and bac longs need to hold on. obummer will be out of office come 1/13 and by 6/2012 the country will see his favorable rating so low that any republican will win. when it becomes apparent to all that obummer is a one term wonder just watch the dems in congress run away from him. jmho-bucko
ps-REPEAL DODD FRANK BILL!!!
If you want to profit by Buffet's expertise, it makes more sense to just buy Berkshire Hathaway stock, not Bank of America, that's my only point.
i think i can bet more for my buck in long run by buying BAC. but thanks again for your comments. i appreciate them.
Buffett's investment is not common stock so he has less risk than common holders but he still likes the companies. he doesn't just like his preferred status, he speaks about the fundamentals in the companies which is why i still believe the companies will eventaully turnaround and so will the common stock. he will benefit no matter what but so will common stock owners. my opinion. if i am wrong, then i will accept the consequences. i have time to wait...
I never said Buffet made a bad investment, in fact the investments have been great - for Berkshire Hathaway. If you want to profit by Buffet's expertise, it makes more sense to just buy Berkshire Hathaway stock, not Bank of America, that's my only point.
Thank you merenkov. this is very informative , however, since august, the entire market has tanked because of europe woes. buffett is always in for the long haul, not just a few months. so, while these stocks are down since he invested, it is not fair to call his investment a bust only after a few months especially since Europe has wreaked havoc in every stock since August. let's see how it plays out over next year. i still believe BAC will weather the storm. thanks again for the info.
I am sure the value is still there. Perhaps since it is so multi-faceted some thought regarding spinoffs is in order. A bank can use but does not need a, Brokerage arm, Mortgage arm, Credit arm. These could all be sold or spun to shareholders to fend for themselves. Then as a Bank BAC would likely strengthen considerably.
can you name another Buffett investment that made him lots of money while the company and common stock plummeted? i am interested in hearing if there is one you can recall.
he invests in companies that have upside. yes, he gets preferred shares but his fundamental analysis of the companies is always sound.