Buffett invests in BofA - should you?

CHARLOTTE, NC (WBTV) - Warren Buffett is probably the country's most revered investor, and today, his $5 billion bet on Bank of America stock sent a jolt of confidence from Wall Street all the way to Trade and Tryon.

BofA employee Sertac Iran says the mood inside the bank's tower lifted dramatically.

"It creates this optimism," he says.

And BofA was quick to issue a press release touting the deal, even quoting Buffett.

"Bank of America is a strong, well-led company," the quote reads,"and I called Brian to tell him I want to invest in it."

But Iran wonders who really called who.

"I'm not sure [Buffett] really wanted to do that or if he was asked to do it," Iran says. "But I think it's good for both parties."

It is, in fact, an incredibly sweet deal for Buffett.

The world's third richest man is getting a healthy dividend of six%, and his investment came with warrants to buy 700 million BofA shares at just over $7 each.

That made Buffett a $700 million paper profit in the first 30 minutes of trading.

And the Wall Street Journal says the whole thing includes a caveat - BofA must repay Buffett's five billion, plus a five percent premium, at any time.

It doesn't exactly make Buffett's move look all that risky.

Still, the bank's stock did soar this morning, so we hit the streets this afternoon to ask people in Charlotte if they, too, plan on putting their money with Buffett's.

"I don't think so, not necessarily," said Sandra Simpson, "because that's probably just a small drop in the bucket in terms of what needs to happen."

"I don't know that I'd invest there," Mick Wheeler added. "Right now my portfolio doesn't have any bank stocks."