Shares of Bank of America dipped slightly on Monday following the news.<\/p>\n

Bathtub idea<\/h3>\n

The Oracle of Omaha’s purchase of Bank of America has become one of the most endearing Wall Street tales. In 2011, the legendary investor bought $5 billion worth of the bank’s preferred stock and warrants to shore up confidence in the lender as it grappled with losses related to subprime mortgages in the aftermath of the financial crisis.<\/p>\n

Buffett later revealed that he got the idea while taking a bath in his tub.<\/p>\n

“Incidentally, that BofA purchase, it literally was true that I was sitting in the bathtub when I got the idea of checking with … BofA, whether they’d be interested in that preferred,” he said at Berkshire’s annual meeting in 2017, when he first converted the warrants and added the bank stock to his portfolio.<\/p>\n

The 93-year-old investor said he was attracted to CEO Brian Moynihan’s leadership and the profit-generating abilities of the franchise.<\/p>\n

Moynihan later recalled that Buffett initially tried to reach him through Bank of America’s public phone line, but got rejected by the call center. Despite the snafu, the deal still came together within hours, he said.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Source: www.cnbc.com<\/p>\n","protected":false},"excerpt":{"rendered":"

Warren Buffett walks the floor ahead of the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2024.\u00a0 David A. Grogen | CNBC Berkshire Hathaway trimmed its gigantic Bank of America holding for the first time in four and a half years following the bank’s strong 2024 run. Warren Buffett’s conglomerate sold 33.9…<\/p>\n","protected":false},"author":1,"featured_media":83975,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"WB4WB4WP_MODE":"","WB4WP_PAGE_SCRIPTS":"","WB4WP_PAGE_STYLES":"","WB4WP_PAGE_FONTS":"","WB4WP_PAGE_HEADER":"","WB4WP_PAGE_FOOTER":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[78],"tags":[],"class_list":["post-83974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\n