Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of troubled Bank of America (NYSE: BAC) charged as much as 26% higher today before cooling off to a 10% gain on word of an investment in the company by Warren Buffett.

So what: Fools have been debating each other and, in the case of fellow Fool Matt Koppenheffer, himself, about the future of Bank of America lately. Today, Buffett told us he thought the company was undervalued by buying $5 billion of preferred stock.

Now what: The capital infusion is a big boost of confidence for Bank of America, which has been under the gun. And like Goldman Sachs and General Electric during the height of the recession, there's no better man to have in your corner than Buffett when times get tough.

But like those two deals, Buffett isn't giving his money away for free. He is getting a 6% dividend on his preferred shares and warrants to buy a cool 700 million shares of stock at $7.14 each. At the current price of $7.73, that's a $413 million profit already. No one said it wasn't good to be Buffett.

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