Money and Finance
- Warren Buffett Quote
From Warren Buffett’s 2010 FCIC testimony, when asked why he sold his shares in Freddie Mac and Fannie Mae in the year 2000:I was concerned about the management at both Freddie Mac and Fannie Mae although our holdings were concentrated in Freddie Mac....
- Fairholme Proposes To Buy Insurance Businesses Of Fannie, Freddie
UPDATE: Bruce Berkowitz was on CNBC discussing this HERE. Thanks to Will for passing this along. (Reuters) - Fairholme Capital Management has proposed to buy the insurance businesses of Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB), a move...
- Ignoring The Elephant In The Bailout - By Gretchen Morgenson
IF you blinked, you might have missed the ugly first-quarter report last week from Freddie Mac, the mortgage finance giant that, along with its sister Fannie Mae, soldiers on as one of the financial world’s biggest wards of the state. Freddie — already...
- September 2003 Statement From Ron Paul On The Gses And The Housing Market
I saw this statement mentioned on TV and thought it was worth posting. The connection between the GSEs and the government helps isolate the GSE management from market discipline. This isolation from market discipline is the root cause of the recent reports...
- Interview With Rich Pzena: Opportunity Amid The Ruins
IT'S BEEN A DREADFUL YEAR FOR NOTED VALUE MANAGER Rich Pzena, whose funds lost money in 2007, while shares of his newly public management company (ticker: PZN) sank to 12 from more than 22. Blame it in part on the manager's fondness for financial...
Money and Finance
Long-Term Value in Freddie Mac
[Rich] Pzena, whose firm, Pzena Investment Management, recently went public, says the mortgage purchaser is still severely undervalued.
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Speaking at the annual Value Investing Congress in New York City, Pzena labeled Freddie "the single cheapest stock that I've come across in my career." This isn't because Pzena is bullish on the U.S. housing market (he's not), but because he says Freddie has been unfairly tarnished by the subprime brush that is has afflicted so many mortgage lenders.
Speaking at the annual Value Investing Congress in New York City, Pzena labeled Freddie "the single cheapest stock that I've come across in my career." This isn't because Pzena is bullish on the U.S. housing market (he's not), but because he says Freddie has been unfairly tarnished by the subprime brush that is has afflicted so many mortgage lenders.
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Freddie's shares (symbol FRE) traded at $65 as recently as August 22 and plunged to as low as $22.90 on November 26 before rebounding.
Freddie's shares (symbol FRE) traded at $65 as recently as August 22 and plunged to as low as $22.90 on November 26 before rebounding.
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Pzena says he considers three questions when analyzing businesses selling at low prices. Is it a good business? Are its problems temporary, rather than permanent? Is it rational to think that earnings will return to historical levels? With Freddie, he says the answer to each is yes.
Pzena says he considers three questions when analyzing businesses selling at low prices. Is it a good business? Are its problems temporary, rather than permanent? Is it rational to think that earnings will return to historical levels? With Freddie, he says the answer to each is yes.
- Warren Buffett Quote
From Warren Buffett’s 2010 FCIC testimony, when asked why he sold his shares in Freddie Mac and Fannie Mae in the year 2000:I was concerned about the management at both Freddie Mac and Fannie Mae although our holdings were concentrated in Freddie Mac....
- Fairholme Proposes To Buy Insurance Businesses Of Fannie, Freddie
UPDATE: Bruce Berkowitz was on CNBC discussing this HERE. Thanks to Will for passing this along. (Reuters) - Fairholme Capital Management has proposed to buy the insurance businesses of Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB), a move...
- Ignoring The Elephant In The Bailout - By Gretchen Morgenson
IF you blinked, you might have missed the ugly first-quarter report last week from Freddie Mac, the mortgage finance giant that, along with its sister Fannie Mae, soldiers on as one of the financial world’s biggest wards of the state. Freddie — already...
- September 2003 Statement From Ron Paul On The Gses And The Housing Market
I saw this statement mentioned on TV and thought it was worth posting. The connection between the GSEs and the government helps isolate the GSE management from market discipline. This isolation from market discipline is the root cause of the recent reports...
- Interview With Rich Pzena: Opportunity Amid The Ruins
IT'S BEEN A DREADFUL YEAR FOR NOTED VALUE MANAGER Rich Pzena, whose funds lost money in 2007, while shares of his newly public management company (ticker: PZN) sank to 12 from more than 22. Blame it in part on the manager's fondness for financial...