Following Buffett: BAC preferred shares

Bank of America is currently facing serious regulatory scrutiny, and therefore the company is selling assets to prove it can make capital ratios under Basel 3 standards.

But the overall solvency of the bank looks intact. Warren Buffett recently purchased cumulative preferred shares of BAC at 6%. While such seniority is not available to the author, this newsletter will purchase BAC H series preferred shares at $22.63 (par $25 / current yield 8.8%).