Billionaire investor Warren Buffett's Omaha-based Berkshire Hathaway stands to make a pretty penny by investing $5 billion in Bank of America whose stock had been diving toward the cellar. BofA's stock soared on the news, as did the value of Buffett's stock that he had just purchased for a song.
But what is most amazing about all this is the fact that Buffett called the bank unsolicited with his offer to buy the troubled bank stock and the bank told him that he didn't need the money, said the Tribune:
Buffett and Bank of America said he made an unsolicited call to the bank on Wednesday morning, offering to make an investment. Even though the bank has said it did not need to raise capital, investors widely believed Bank of America needed more money and to show it could raise funds easily.
Buffett told CNBC he had never spoken to Bank of America CEO Brian Moynihan before Wednesday, and that he dreamed up the idea while taking a bath.
Are these people nuts? The very existence of the bank was in question. We sold some BofA stock a while back because my wife, a Realtor, could not get the bank to accept two reasonable offers for a house whose mortgage was under water. Stupid people