His Berkshire Hathaway company will pad the struggling bank just like it did Goldman Sachs during the last crisis. So far it’s working: B of A opened up 22 percent, buoyed by news of the capital injection, and the Dow started up nearly 75 points too. “Bank of America is a strong, well-led company, and I called Brian [Moynihan] to tell him I wanted to invest in it,” Buffett said. “I am impressed with the profit-generating abilities of this franchise, and that they are acting aggressively to put their challenges behind them.” The idea reportedly came to the billionaire in the bathtub, which appears to be something of a theme in his life — the site of childhood games, important decisions, and always handy for a metaphor, like back in 2008:
“Unfortunately, the economy is a little like a bathtub,” Mr. Buffett said in an interview at the time. “You can’;t have cold water in the front and hot water in the back. And what was happening on Wall Street was going to immerse that bathtub very, very quickly in terms of business.”
Just think of Buffett’s money like adding bubbles: everyone’s having more fun now.
Buffett Invests $5B In Bank Of America; Shares Soar [WSJ]
Buffett’s Bathtub Fixation [DealBook/NYT]
Just think of Buffett’s money like adding bubbles: everyone’s having more fun now.
Buffett Invests $5B In Bank Of America; Shares Soar [WSJ]
Buffett’s Bathtub Fixation [DealBook/NYT]
