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This commentary originally appeared on Real Money Pro on Aug. 25 at 11:23 a.m. EDT.

Warren Buffett is not buying America. He isn't even buying the common of

Bank of America

(BAC) - Get Bank of America Corp Report


He is getting more attractive terms from Bank of America than any other investor can get.

Please follow, as I try to explain why I don't expect that the Buffett/Bank of America transaction is enough to sustain the morning's swift rise in equities.

Investors are applauding Warren Buffett's Bank of America investment today. As well, the media is putting a positive spin of the deal.

I, too, believe that the financials are attractive. Indeed, on Tuesday's "Fast Money" on



expressed admiration

for Bank of America and for the banking sector.

Nevertheless, a more objective assessment of his move is in order now.

Buffett's widely heralded previous buys of

General Electric

(GE) - Get General Electric Company (GE) Report


TheStreet Recommends

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. (GS) Report

were done when the common share prices were at levels that were much higher than current prices. I suspect if one did the analysis of those purchases, we would find that both GE and Goldman common have been massive underperformers as their share price changes are likely in the bottom decile of stock performers since his "preferred" purchases.

The Oracle's investments in GE and Goldman did well not because the underlying share prices appreciated -- they did not; they declined -- they did well because of a preferred structure that included a high-yielding paper with enormous warrants attached.

In the media, I am seeing a lot of flag-waving about Buffett's move today but little in the way of substance. Based on reports, it appears that Buffett did not have a deep knowledge or perform an extensive analysis of Bank of America. Indeed, "Squawk Box's" Becky Quick reported that Buffett told her he got the idea while in the bathtub. When he emerged from the tub, Buffett initiated a call to Bank of America's Moynihan and spelled out his interest in making an investment in the bank.

In other words, it appears that there was little due diligence done and that Buffett, similar to his previous deals, is relying on the preferred structure of the Bank of America deal.

If Warren Buffet was a real believer, wouldn't he simply buy the common stock like other investors? Now that would have been a reason for investors to rejoice.

It would be disingenuous for Buffett to say and for the media to conclude that in making a "preferred" investment in Bank of America that he is making a statement on the U.S. and that he is, once again,

buying America


Warren Buffett is a brilliant investor -- the best there ever was -- but the Bank of America deal is another example of how Buffett benefits from his unique stature in the world's financial community.

Doug Kass writes daily for

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At the time of publication, Kass and/or his funds were long BAC and GS/short GE, although holdings can change at any time.

Doug Kass is the president of Seabreeze Partners Management Inc. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.