THE BASIS POINT

Buffett’s Bank of America Investment Makes Him Major Mortgage Player

Warren Buffett’s Berkshire Hathaway, who owns about 10% of Wells Fargo, announced that it is investing $5 billion in Bank of America. $100,000 per share for 50,000 shares…as one would expect, BofA’s stock is up over 20%. Buffett stated that BofA is a “strong and well-led company.” That is a big chunk of change, and already at a profit given this morning’s stock move. He now owns big chunks of the two largest mortgage lenders.