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O’Reilly Has Some Business Advice For Warren Buffett Re Bank Of America

Reported by Ellen - August 26, 2011 -

Earlier this week, we noted how Bill O’Reilly decided he knew better than Warren Buffett or economist Ben Stein about what’s good for the economy because… well, because he just “knew.” Last night (8/15/11), O’Reilly took his gut understanding one step further and offered his direct thoughts on Buffett’s “ideological” decision to invest in Bank of America: “You’re wrong, Warren.” But it looks like Buffett may get the last laugh. A CNN report today is headlined, “Buffett's one-day win on Bank of America: $357 million.”

Self-appointed Master of the Business Universe O’Reilly said early in his Talking Points Memo last night, “In 2003, Buffett agreed to advise California Governor Arnold Schwarzenegger about economic issues and we all know how that turned out.” Nice ideological sleight of hand there. O’Reilly never said that California's problems had anything to do with Buffett’s advice – or even what he advised Schwarzenegger. But I guess when you’re a business guru like O’Reilly, facts and figures are for other people.

O’Reilly continued by suggesting that Buffett’s political ideology guides his investment decisions:

Just today, Warren Buffett announced he will invest $5 billion in the Bank of America, which is having a very hard time. On paper, Buffett’s investment looks to be shrewd for his company, Berkshire Hathaway. Full disclosure, I have stock in that company. So it’s obvious that the billionaire Buffett is emerging as a stalwart for the Democratic Party and supports the income redistribution policies that President Obama and the left champion.

“There’s no question that Buffett is a brilliant businessman and this is what makes the situation so confusing,” O’Reilly acknowledged. But it was soon clear who knows best when it comes to business!

Simply put, President Obama’s economic policies have failed… Warren Buffett has to know that raising taxes on businesspeople and big-spending consumers during tough economic times is very risky. Buffett has to know it!

…Yet even before knowing who Barack Obama’s challenger will be, Buffett is putting his prestige and money behind the president. So it must be an ideological play because it makes no business sense at all. Ideology is why this country’s in trouble.

…You’re wrong, Warren. You’re simply wrong.

Maybe so. But as CNN reports today:

In exchange for the Buffett brand name and $5 billion, the Charlotte, N.C. financial institution granted Warren Buffett the option to buy up to 700 million of its shares any time in the next 10 years for $7.14. Yesterday those warrants would've reaped the Omaha investor a nine-figure profit.

Such paper profits could be ephemeral should Bank of America (BAC, Fortune 500)'s stock drop dramatically and stay there.
For now, with the bank's stock trading at $7.67 by midmorning Friday, investors are betting that yet again Buffett correctly spotted a long-term safe haven for his and his investors' fortunes.

I wonder if O'Reilly is thinking of selling those shares of Berkshire Hathaway anytime soon.

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