3 ms·
That's one hell of a bet. I'm actually surprised that Buffet didn't want to buy the bank's debt offerings (if there are any). I haven't read past the first co
by typicalrunt 15y ago
That's one hell of a bet. I'm actually surprised that Buffet didn't want to buy the bank's debt offerings (if there are any).
I haven't read past the first couple paragraphs (too much legalese) but is there an out clause? If BoA tanks in the stock market, Berkshire could stand to lose a lot of money on the common stock.
- anamax 15y ago> If BoA tanks in the stock market, Berkshire could stand to lose a lot of money on the common stock. When Buffet made similar bets post-crash, the US govt made sure that he made money. (Of course, GS also had other things going for it, like much of the top-staff at Treasury.) Obama and Buffet have been very good for each other.
- MikeCapone 15y agoBuffett didn't buy the common, he only has warrants with 10 year expiration. He bought preferreds at 6%, afaik.
- waterlesscloud 15y agoI liked this bit from a FT Alphaville post on the topic: "Warren’s warrant exercise price — a Fibonacci-esque $7.14285" (which is 5B divided by 700M,but it's a fun number anyway)