Buffett to Invest $5B in Bank of America
Shares jumped 24% to $8.68 at the opening bell on the news
By Kevin Spak,  Newser Staff
Posted Aug 25, 2011 8:49 AM CDT
In this March 24, 2011 file photo, billionaire investor Warren Buffett gestures at a news conference in New Delhi.   (AP Photo/ Mustafa Quraishi, file)

(Newser) – Warren Buffett made news again today, as Bank of America announced that Berkshire Hathaway would be buying $5 billion worth of its preferred stock. “Bank of America is a strong, well-led company, and I called Brian to tell him I wanted to invest in it,” Buffett said. “They are acting aggressively to put their challenges behind them.” The bank’s stock has lost almost half its value this year based on fears that it would need to raise capital on the open market, Bloomberg reports. Shares jumped 24% to $8.68 at the opening bell on the news.

 

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