ZenaidaMacroura Posted February 4, 2014 Share Posted February 4, 2014 http://www.washingtonpost.com/wp-dyn/content/article/2007/10/30/AR2007103002292.html It always struck me as particularly prescient that he was able to make money on Freddie but was not enticed to stay around when the clock struck midnight. It's one thing to not want to be involved in an investment at all but to look at Freddie's earnings growth and return on equity in 1988 and 1992 and to take a substantial position only to subsequently sell it into an apparently strong housing market is lost on me. He cites in the article that he sold primarily because they diversified into an unrelated line of business - anyone know what he's referring to? Also, given the reaffirmed earnings growth Buffett alludes to, would anyone here sell an investment that was showing stellar returns and guiding mid teens earnings growth just because it happened to diversify some? I mean if they were good at utilizing retained earnings before why expect that to change? Link to comment Share on other sites More sharing options...
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!Register a new account
Already have an account? Sign in here.Sign In Now