Warren E. Buffett is among the nation’s best deal-makers, and in the $5 billion investment he struck with Bank of America, he’s getting a guaranteed profit.
Under the terms of the deal, Mr. Buffett’s Berkshire Hathaway will receive 50,000 perpetual preferred shares. That stock carry a 6 percent annual dividend payable quarterly, meaning that Bank of America will be sending about $300 million a year to Berkshire’s headquarters in Omaha.
Put another way, Berkshire will be earning $821,917.81 a day, or $9.51 a second. All in all, not a bad way to spend $5 billion, especially when Berkshire had $47.9 billion in cash and equivalents as of the end of the second quarter.
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