Buffett rides Bank of America


Bank of America was a huge stock market winner in 2012, as its share price basically doubled. That was a good news for Warren Buffett. Recall that in August 2011, the Sage of Omaha invested $5 billion Bank of America preferred shares paying a hefty 6 percent annual dividend and 10-year warrants to buy 700 million of the bank's shares at $7.14 apiece. Exercising those options at the end of last year would have generated more than $3 billion in profit. Buffett also benefits from big conventional bets on Wells Fargo and other financial firms. Berkshire Hathaway's Class A shares advanced 17 percent last year, beating the 13 percent gain in the S&P 500, notes Bloomberg. Article