Buffett Converts BofA Warrants

Berkshire Hathaway CEO Warren Buffett secured an $11.5 billion gain by exercising warrants to purchase 700 million shares of Bank of America Corp., according to an article in Bloomberg. The share purchase will result in a $16.5 billion stake in the Charlotte, North Carolina-based bank. In 2011, Buffett invested $5 billion in BofA in exchange for the warrants and preferred stock, assuaging doubts that the bank had insufficient capital reserves. Since that time, the shares have more than tripled. In a June statement, Berkshire telegraphed that it would convert its preferred shares to common once the bank increased its dividend. […]