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I thought BoA said they didn't need capital...

• juiceandjuice 15y ago
  BoA stocks have been taking what some economists have said to be an undeserved hit in the market. Buffet probably thinks this as well, and decided stock was cheap and the deal would be mutually beneficial.
  • bradly 15y ago
    Yes. Many investors think BoA stock price is below book value. Meaning that if they sold off all of their assets, that amount would be more the the number of shares * stock price. It would look like Buffett agrees.
    • waterlesscloud 15y ago
      From this it looks like he bought a series of Preferred stock created especially for this deal. This is not what you or I could buy.
  • richcollins 15y ago
    Or perhaps Buffet knows that they will get a fed bailout and he'll get his money back and then some.