Doug Kass: 'Bank Of America Got Fleeced By Buffett'
Warren Buffett is making a 10.5% annual return on his Bank of America investment once you account for the value of his stock options, investment manager Doug Kass says.
This, Kass adds, is the equivalent of Bank of America having sold stock to Buffett at $4 a share.
Bank of America chose to do this deal when it can "borrow" nearly unlimited cash from depositors and the government at close to 0% interest rates.
So in case you were still questioning whether Bank of America really needed the money, you now have your answer.
"Moynihan got fleeced by Buffett, the savviest of wolves who slipped out of his bathtub wearing sheep’s clothing."
The other interpretation is that this was the best deal they could get.
This story originally appeared on Business Insider
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