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<p>[QUOTE=&quot;fatima, post: 1252690, member: 22143&quot;]You didn&#039;t make your case.</p><ul> <li>What Buffet paid for other investments is irrelevant to this deal.</li> <li>Who called who is irrelevant.&nbsp; If you believe that Buffett did this on his own then so be it.&nbsp;&nbsp; </li> <li>His preferred status means his investment is protected and above that of the common stockholder.</li> <li>He is guaranteed 6%+ return on his investment regardless of the earnings of the bank,</li> <li>If there is a bankruptcy, he will get paid back his investment.</li> <li>He also gets the extraordinary privilege of the right to buy 700,000,000 shares of common stock at the fixed price of a little over $7, should the bank do well.</li> </ul><p>This is a deal that is not available to other investors and it comes at the cost of the common stock holder.&nbsp;&nbsp; </p><p><br /></p><p>So let&#039;s see.&nbsp; He can&#039;t lose any money on this deal.&nbsp; He is guaranteed a rate of return far in excess of what any other person can get relative to the risk.&nbsp; He gets all his money back if the bank fails and gets a kings ransom in money if the bank, by some miracle, manages to survive.&nbsp;&nbsp; ****, I would invest money in that, but alas, I am a common person and these deals don&#039;t come to us.&nbsp;&nbsp; </p><p><br /></p><p>If this was just a matter of Buffett wanting to invest in BofA because he thought it was a good deal, he could have just gone onto the stock market like everyone else.&nbsp;&nbsp; The common stock is very cheap right now if you believe in this bank.&nbsp; nuff said.&nbsp;&nbsp; </p><p><br /></p><p>So to answer your question, it confirms what I said.&nbsp;&nbsp; You said they had a strong balance sheet, yet banks with such things, don&#039;t need to make these kinds of deals.[/QUOTE]</p><p><br /></p>

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