A bold $5 billion wager on Bank of America (NYSE: BAC) from famous investor Warren Buffett lifted the stock at Thursday’s open but the stock quickly pared its gains, along with financial exchange traded funds.

Buffett’s Berkshire Hathaway will buy 50,000 shares of preferred stock with a 6% dividend. Berkshire also receives warrants to purchase 700 million shares of Bank of America common stock.

The warrants may be exercised for 10 years after the transaction closes, according to a press release. Bank of America gets $5 billion in cash in exchange for the preferred stock and warrants.

Investors wondered whether the purchase signals a bottom in the beaten-down financial sector. Buffett reached a similar deal with Goldman Sachs (NYSE: GS) in the credit crisis.

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