Warren Buffett Likes Warrants – Should You??

The Warrant Report
August 29, 2011

Warren Buffett Likes Warrants – Should You??

In this issue:

  • Warren Buffett Likes Warrants – Should You?
  • Riding the Rollercoaster…..

Warren Buffett is at it again, helping out the financial sector, via his recent $5 Billion investment in Bank of America.

An incredibly savvy investor he virtually always insists on receiving long-term warrants as part of his investment package.

In this case, and to summarize the highlights of this BOA transaction:
50,000 perpetual preferred shares
6% dividend per year
Redeemable at a 5% premium
Warrants – 700 million warrants, 10 year life with an exercise price of $7.14

Warren Buffett has it figured out correctly.

If you can get a long term warrant on a company you like this presents an excellent
opportunity for potentially large gains on your investments.
See complete details.

Some of you may remember our article back in 2008 when Buffett invested in/bailed out Goldman Sachs and GE and again insisted on receiving long term warrants as part of his investment package. Warren Buffett Likes Warrants

Think about it.  A warrant, a long term call if you will, on a company that you like that greatly limits your cash outlay while offering you the potential for great gains. The leverage is the key to warrants, a greater gain on your investment dollars. 

If you need more information you can visit our Learning Center.

Riding the Rollercoaster…..

We are pleased to provide our most recent interview with Ellis Martin with our thoughts on the markets….. Give it a Listen

We saw this interesting quote recently:

….” if we are all in the parade who is going to watch us walk by”

Think about this the next time you try and convince a friend or family member to invest in resource shares or warrants. Most just don’t get it, at least, not yet.

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Sample of Current Open Positions

Sample of Closed Positions


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Dudley Pierce Baker – Owner/Editor – Guadalajara/Ajijic, Mexico
Bruce Ross – Webmaster and Administrative Assistant – Phoenix, USA

Jeff Baker – Assistant Editor and Administrative Assistant, El Paso, USA

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