Bank Of America Warrants -- January 14, 2018 -- Nothing About The Bakken

There was a story linked over at Yahoo!Finance this weekend: Bank of America warrant holders could reap 4,000 percent return. I didn't care much about the story one way or the other -- that's how warrants work. I was more intrigued by some of the comments, particularly comments made by individuals who apparently did not understand how warrants work and comments made by individuals who felt they were deprived of getting in on a good deal because they did not know about them.

In fact, the story was a huge headline story about six months ago, a different circumstance, perhaps, but certainly an opportunity for others to see if there were other warrant opportunities available. The story in June, 2017: Warren Buffett just made a quick $12 billion on a clever investment.

• Warren Buffett's Berkshire Hathaway will exercise warrants in Bank of America allowing it to acquire 700 million common shares at an exercise price of $7.14 each, or about $5 billion
• At Thursday's closing price, that stake is worth more than $17 billion
• Berkshire will also become the bank's largest shareholder

Again, investing in America is an open-book test.