Buffett: I’d Buy U.S. Banks Now

Nov 7, 2011
J. Webster
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What the hell, Buffet’s not talk to Becky Quick? Who is this Poppy Harlow? Anyway, Buffett did a lot of buying in this past quarter, as in $6.9 billion worth of U.S. stocks. Buffett of course is notorious for buying stocks when they’re hated and then waiting five or ten years to sell those once hated stocks.

And in particular, at the beginning of the video below, Buffett says he’d buy U.S. bank stocks – one of the most hated sectors right now. Buffett has big positions in both Wells Fargo and U.S. Bank and then he got a sweet hearts deal when he bought $5 billion worth of preferred BofA shares paying him a 6% dividend. In the deal he also got warrants for 700 million BofA shares that it can exercise over the next 10 years for around $7 per share. I’m sure this will pay off nicely for him in due time, plus he gets paid more than handsomely to wait.

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