This is a quote from Tickerspy regarding Warren Buffets investment in Bank of America.
Quote:
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I will bet against the common wisdom. Buffett unloaded his entire shareholdings in BofA last year. These were common shares. He now gets a six percent dividend which is seventy percent tax free under tax law as to dividends paid from one corporation (BofA) to another Berkshire and he is preferred over the payment of dividends to other common shareholders. He also has ten years to but the shares at around $7/share which is very generous. This is not a show of confidence in BofA who did not need the capital last week but confidence in the shrewdness of Warren Buffett who did the same with GE and Goldman Sachs just before the commons shares in Goldman tanked last week.
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I guess that's why he is so rich. He is very smart!