PreMarks: Buffett and Jobs

Stocks are ripping on the open this morning. Bank of America {BAC} is selling 50,000 preferred shares to Berkshire Hathaway for $100,000, a $5 Billion dollar investment in BAC. BAC is a bank rumoured to be in trouble by continued exposure to the housing market. The Buffett investment is seen as vote of confidence in the long term prospects of the bank.

This news is offsetting the news announced late last night that Steve Jobs is stepping down at Apple. Before the Buffett news broke Jobs resignation was the news of the day. I don't own Apple directly {it is however a major component of several of the ETFs I own for clients}. However, I would say that I think that Apple has been preparing for at least several years for the day when Jobs is no longer at the helm. In regards to Jobs being irreplaceable one has to feel on a personal level sadness as this has to be viewed as a sign that his pancreatic cancer has worsened. In regards to what will happen to Apple the company I am reminded of the old de Gaulle comment, "Cemeteries are full of irreplaceable people". Again this is not intended to make light of Jobs' illness but my guess is that Apples next few years are already mapped out while much of the day to day blocking and tackling at the firm has already been handled by his successor Tim Cook.

*I hold as legacy or custodial positions for clients shares in BAC and Apple.  Each also is a major component in certain indices that I invest in for clients.