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Our Members scored big on BAC, before Buffet did!
A day ahead of the Oracle of Omaha!
Our Members Got in before Buffett did!
There are legions of investors who follow Mr. Buffett's every move, dozens of funds with hundreds of millions of dollars are modeled to mimic his holdings. However, we can officially say that we were a day ahead of everyone, including the Oracle himself. We suggested yesterday, Bank of America stock was looking more like a Daily Deal!
FACTCHECK - Our headline yesterday was America's Largest Bank - Bank of America was 50% OFF – it was time to get in! We had no idea Mr. Buffet would jump right in.
The other ironic thing is the timing; the investment in BoA is exactly the mirror image of his investment in Goldman. The ardent fans and followers of Buffett, we know they are in millions, would remember this very well – it was about the same time of the year just before the Jackson Hole meeting-
Did Ben know?
Was it a mere coincident or planned? Was Ben informed? we are not a big fan of conspiracy theory, but how ironic, same amount of money, exactly identical situation [hush! this suppose to be a secret for members only! but, in the interest of the wider world and the capital markets this shall not remain a secret]
Chinese Electric car hits a circuit breaker
Buffett was not happy! He was back on the prowl, the Chinese Electric Car investment had blown a fuse, profits down 90%. He needed something big, something huge, to talk about in the next shareholders meeting, he needed a big catch.
In the dark final days of August, Washington experienced an earthquake of 5.8 magnitude, Stock market in turmoil again, banks were bleeding. He spotted a Giant, exhausted and experiencing severe Hypoxia, Buffett said to himself: a perfect catch, a wounded Giant, Too Big to Fail, but wouldn't mind a helping hand from an old proven sage!
The $500 Million Dividend Check
Buffett's $5 Billion Dollar investment in Goldman made him a whopping $500 Million Dollars, every year, just in dividends folks (when was the last time you had a dividend check like that) Even for the mighty Goldman it was little too much, so, finally Goldman decided to pay back the $5 Billion Dollars.