A Piece of Americana

Part One

CONNECT THE DOTS—THE ORACLE OF OMAHA STRIKES AGAIN

                             By Wade B. Cook

NOTE: This is a grouping of articles and blogs that I believe is chocked-full of great information—from book value to P/E ratios. Every investor should know these things, and here, in a very lively format, they’ll get the knowledge they need to make better decisions.

           I had occasion a while ago to sit out at the picnic tables with a bunch of curmudgeons. The big news of the day was Warren Buffett (Berkshire-Hathaway [BRK.A]) investing $5,000,000,000, yes as in B for Billion, into Bank of America. Upon the announcement and shortly after the market opened, the stock went up to over $8.50 from around $7.01, and then settled for the day around $7.50. This caused me to think long and hard about this stock, the foundation of the company, and this news announcement. As always, it never is what meets the eye. I love these moves, and I love figuring things out. You will read here my analysis of this transaction, broken into three parts. One is my initial take, and then later when I had more news about this new deal. Lastly, a current update.

 

Stock MarketWade Cook