Warren The-Rich-Should-Pay-More-Taxes Buffett, stock picking genius behind Berkshire Hathaway, announced his company is pouring, uh, investing, over $5 billion in struggling Bank of America.
Claiming he spoke to the president of BofA the day before he announced his plan, Buffet said
"Bank of America would sell it 50,000 preferred shares at $100,000 a piece. The preferred stock has a dividend of 6 percent and is redeemable at a 5 percent premium."
Six percent; compared to Treasuries a very nice yield.
After the news broke BofA's stock shot up 24%; Bob Pisani of CNBC News estimated Buffet made a paper profit of over $800 million in 19 minutes.
And of course, practicing what he preaches, Buffet immediately whipped off a check to the US government, ordered his accountants not to take advantage of all the available legal tax reducing deductions and disbanded his tax sheltered foundation where he decides how to disburse his wealth, not the government.
And of course we know he didn't. But that's fine; Warren Buffett, just continue investing and strengthening the free market and creating wealth--that's your strength. And please, please don't pontificate so falsely about tax policy--that's definitely not your strength.
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