Right now, there are a little over 10,000,000,000 shares of BAC stock. If Buffett exercises 700,000,000 warrants, then Bank of America shareholders will experience a roughly 7% share dilution. Let’s say, hypothetically, that Bank of America generates earnings per share of $2.00 in the year 2014. If Buffett exercises those warrants, he will singlehandedly reduce your share of profits to $1.86 per share. In a twisted way, Buffett’s so-called vote of confidence in the bank could actually prove harmful to shareholders of the common stock a couple years down the road.