A few months back when Bank of America was in financial trouble Warren Buffett came to the rescue and invested 5 billion in B of A. Part of the deal allows Buffett to purchase 700 million shares at a price of $7.14 per share. The stock was trading at $4.94 when Obama announced the 25 billion dollar bank payout program for customers with mortgage problems. The stock then rose to $8.35 per share. Buffett could have exercised his options at that point and made 847 million but he chose to hold waiting for a higher price.
Buffett’s group owns the Burlington-Northern Rail Road which they bought in 2009 for 44 billion. If the Keystone Pipeline is not approved then the BN RR will move the oil to the west coast for shipment to China. A spokesman for BN said if the Keystone doesn’t work we are here to haul.
There is nothing illegal about any of this but it adds to the perception that small investors do not play on the same field with the rich. Duh!
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