Bac is getting too high in price unfortunately. I actually almost made that trade... accumulate a lot of BAC shares at like $5, because if it goes lower, it'll do what C did... if it goes higher, I'll make a lot of money.
Yeah, I didn't catch it though, unfortunately. The strategy would probably work for other stocks as they dip lower though... assuming they don't just quickly go bankrupt.
Buffet has not been right about every stock he has bought. Only Buffet's stocks which were successful get highlighted on the news while the others get forgotten about. When one of Buffet's stocks is down then they always make the excuse that he is a "longtime investor". I remember there was this stock called USG that Buffet bought in 2006 and it has since never recovered. No one ever mentioned it again and Im not sure if Buffet still has it. In this case, BAC is like an option which might go much much higher or to zero. Its a single digit high risk stock like any other single digit high risk stock. Its trading in the single digits for a reason. While many other stocks are reaching lifetime highs like Starbucks, IBM and Apple, BAC is a crashed out stock which meanders. Even Buffet said himself that he was wrong about housing prices and mortgages is a big part of BAC's business. Im sure Buffet does a lot of research and probably has some inside information, but the point is that he is not always right. There are a few exceptions.