Warren Buffett's annual letter addressing Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) shareholders came out this past weekend, an event that is always highly anticipated among the investing community. This year, the letter noted that Berkshire has the option to buy 700 million shares of Bank of America (NYSE:BAC) at any time before September 2021 for $5 billion. The letter also states that the company will most likely exercise that option shortly before it expires.
This already-profitable position, in effect, makes Bank of America Berkshire's fifth largest holding. In this segment from Monday's edition of Where the Money Is, Motley Fool banking analysts David Hanson and Matt Koppenheffer discuss Buffett's take on Bank of America this year, and in particular, the glowingly positive language he uses. Beyond the Bank of America discussion, Matt and David discuss the future of one of Buffett's favorite business, the importance of the Buffett's stock picks, and Warren's overall wisdom.