I Hate You Bank of America
Why do I hate Bank of America? Was it the sub-prime mortgage lending? Was it them threatening debit card fees? The bailout? Nope. I’m pissed because they got successful and that they did it without me.
I few months ago I noticed that with all the public outrage of the Occupy Movement, their stock, (BAC) took a major hit and was trading at $5. I knew it was an undervalued stock, which, having just read a bunch of finance and investing books, is exactly what you are supposed to look for. The risk of it falling even farther into a penny stock was very little. I mean, the property value of all their buildings alone was more than what their stock was showing. The bet seemed safe and I figured at its worst, I wouldn’t lose much. So I hatched a plan to buy a bunch of shares at this deflated price and wait a year for it to get back to where it probably should be at.
Well, I lost my job and thought it was too risky to buy the stock with so much financial insecurity ahead of me. Smart move right? Well cut to a few months later when I see that BAC is trading at $7.30 a share, meaning that had I bought 400 shares like I wanted to, it would now be worth $2920, netting me $920 in just a few months. And if it ever gets back to its yearly high, I’d be looking at my initial investment being work over $6000. $6000 for reading a financial book and acting on my instincts.
I hate you Bank of America.
