Warren Buffett: I Dreamt Up Bank Of America Deal In The Bathtub

Warren Buffett is the third wealthiest man in the world. He also seems to like making market-shifting financial decisions while relaxing in the bath.

On Thursday, Buffett, the billionaire investor and CEO of Berkshire Hathaway, announced his company would buy $5 billion worth of shares in Bank Of America. Critics wondered if Buffett had been pressured to help the troubled bank. Not so, Buffett says.

"He says he just dreamt this idea up on Wednesday morning while he was in the bathtub," CNBC's Becky Quick said on Thursday after speaking with Buffett over the phone.

The deal is being compared to previous Buffett deals like the $5 billion Goldman Sachs investment during the financial crisis not only because of the risk attached, but also because of the prominence of an anecdotal bathtub story.

After the Goldman Sachs deal, Buffett compared the struggling economy to the tub with "cold water in the front and hot water in the back," The New York Times points out.

And that's not all. Buffett allegedly says his mind also frees up space to "look forward" in the same way a bathtub fills up and then drains, according to a 2008 biography by Alice Schroeder.

Watch Becky Quick talk Buffett on CNBC:

Comments

[Shaktas Na]

05:07 PM on 08/29/2011

I'm glad he has time to dream up ways to save the world banking giant that has enslaved billions of people. Will he dream up a way for Berkshire to pay its back taxes?

"Billionaire Warren Buffett says folks like him should have to pay more taxes -- but it turns out his firm, Berkshire Hathaway, hasn’t paid what it’s already owed for years.

That’s right: As Americans for Limited Government President Bill Wilson notes, the company openly admits that it owes back taxes since as long ago as 2002.

“We anticipate that we will resolve all adjustments proposed by the US Internal Revenue Service (“IRS”) for the 2002 through 2004 tax years ... within the next 12 months,” the firm’s annual report says.

It also cites outstanding tax issues for 2005 through 2009.

Obvious question: If Buffett really thinks he and his “mega-rich friends” should pay higher taxes, why doesn’t his firm fork over what it already owes under current rates?"

Ladies and gentlemen...what would the IRS do to you if you committed a similar act?

http://dailybail.com/home/warren-buffetts-berkshire-still-hasnt-paid-back-taxes.html

[USNDC]

09:44 AM on 08/28/2011

Warren Buffet wants access to all of the property that BOA will soon own through the foreclosure process.

[El Chingaso]

04:24 AM on 08/28/2011

Right room, but better thought up...on the porcelain pony. Something doesn't smell right here. I mean, all of a sudden...wow, I'll just buy $5 billion of a very poorly -- and unethical -- banking institution? Oh, yeah, right, man. Bernanke et al were probably...squeezing old Warren...

[amayzen139]

01:43 AM on 08/28/2011

Buffett without his billions = Warren who? The only reason anyone cares what this old rascal thinks is because he is obscenely rich and that says a lot about his fans: money = wisdom? What a silly assumption! Show us a billionaire and we'll show you a greedy money grubbing thief! No decent human being would ever or could ever accumulate that much money.

[USNDC]

09:47 AM on 08/28/2011

But he really really really wants to pay more taxes ... really.

[tuberider]

07:25 PM on 08/27/2011

Yeah, well he still stinks...

[castcutters]

01:08 PM on 08/27/2011

Becky Quick, Buffett's lap dog at CNBC.

[loki]

11:56 AM on 08/27/2011

You were on the phone with the Fed and BofA while in the Tub... Yikes, not an image I want to think of

[Viable Way]

12:58 PM on 08/27/2011

Remember that other Greek guy who did his best work in the bathtub? I guess he is in good company ;-)

[Thumbody]

11:53 AM on 08/27/2011

Ahhhh....thanks for that visual

[perfectsky]

11:25 AM on 08/27/2011

Warren's dream. Millions of taxpayers providing a backstop to an insolvent B of A while he makes billions. sipping Coke and eating his burger. Oh shucks.

[Pelican1983]

04:14 AM on 08/27/2011

Great. Now whenever I hit the ATM I'll be forced to picture Warren and his rubber ducky.

[liberalmyers]

01:00 AM on 08/27/2011

I remember well during the 2008 collapse how vocal he was about the recovery,and that people should be putting their money to work,and the market fell another 3500 points.I understand the rationel that the panic has to be stopped,but unsophisticated investors were slaughtered taking his advice.I know of several in my neighborhood that were quoting Buffett.

[CSNC]

12:33 PM on 08/27/2011

liberalmyers,

Lesson: people should stop being lemmings. Let lemmings be lemmings.

H

[liberalmyers]

12:35 PM on 08/27/2011

K

[jagrmeister721]

11:38 PM on 08/26/2011

The bathtub was also where had this thought, "It's not fair my secretary has so little disposable income.  It's because she pays a higher share of taxes than I do.  People like that don't get their fair share.  I know!!  I could pay her more so she does get her fair share.  NAH.  I'll just write an editorial in the WSJ about taxation and use her as a data point."

[Carolab]

09:57 PM on 08/26/2011

That's not his bathtub.  He's too cheap to buy one like that.

[hobo62]

07:56 PM on 08/26/2011

The only thing I could think of in the bathtub was how much better my bad knee felt.

[Joe Corbett]

07:25 PM on 08/26/2011

Eureka!