Warren Buffet Buys More BofA Shares

October 01 00:00 2011

New York, October 1 (RainbowNewsLine.com) – Warren Buffet is bullish over Bank of America stock (NYSE: BAC) even as the lender faces tough times. The stock has lost more than 50% of its value ever since the beginning of the year. It is a prime candidate for lawsuits for malpractices during the real estate boom and has enormous litigations lined up against it. It is surprising to see that Warren Buffet, who invests on the basis of strong fundamentals, sees a future in this organization.

Warren Buffet’s investment philosophy is that he buys when the market is in panic. This is why the general investor community is being forced to rethink whether they have valued Bank of America correctly or not. But there are also some suspicions with the fact that Buffet is usually tight lipped about any of his transactions. But the ones with Bank of America are well publicized almost as if to generate a positive word of mouth.

Some even attribute it to the fact that Buffet has got a pretty extra ordinary deal for investing. He has preferred stock that pays 6% dividend payable quarterly as well as warrants which made the deal a $1b profit as soon as it was struck.

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