I hate to say I told you so, but in my November 9, 2007 "Journal" post, I said;

"In the June 30, 2007 reporting period, Warren Buffet purchased 8,700,000 shares of Bank of America (BAC). I am willing to bet the next report we receive will reveal that Buffett added to his bank holdings during this recent pullback."

Well, the cats out of the bag. This is exactly what Warren Buffett did.

While Wall Street, and the momentum gang (hint: "don't buy, don't buy, don't buy") want you to focus on the short term, value players know what to look for.

Please keep in mind Buffett's recent bank additions were purchased from June 30th-September 30th of this year. So, if you feel like you got in too early, don't worry, so did one of the richest men in the world.

If you got in too high, what do you do? Always, and I mean always, dollar cost average in. For example, if you know you want to buy 1000 shares of a company, buy the shares over time in smaller increments.

As of September 30, 2007, Buffett added 28.4 million shares of U.S. Bancorp (USB), 22 million shares of Wells Fargo (now owns 280 million shares), and 400,000 shares of Bank of America (BAC).

I am confident the December 30, 2007 quarterly filing will reveal more additions to this beaten down sector.