Ney investing

A Different view on  Fannie Mae (FNMA) and Freddie Mac (FMCC), an  issue is rather complex.  Here I may refer to both institutions as "government-sponsored entities" or ("GSEs"). But YOU as an investor should focus on what's knowable and controllable. Here is what the market is missing an my variant perspective: "Optionality has value" ! Here is my invitation to you investor: see Fannie Mae and Freddie Mac at current price as an option , that could go to $0 or to $17.55 each. You would really be paying for the optionality. You just bought an option, but not only that, this one doesn't expire.  how much would that option be worth? for a "know nothing about the company" kind of investor using a Black an Scholes kind of formula works pretty well. Even though we don't want to use it for prolonged periods of time, since the formula stops working basically. Charlie Munger on Black Scholes Option Pricing Model (2003) -   https...

Summary of the investment (6 years, 5 months) 33.6%/year  compounded investment sep 11, 2012  -$9500  rent cash flow approximately : $200/month (65 months) = 13,000 profit after sale: $82,708.99 income in the live of the investment: $95,708.99 Return over investment capital =  $95,708.99/ -$11.000 = 870% . 33.6%/year  compounded I bought the LLC that owned this house around sept 2012 for $-11.000, I did need 6 years later to come up with $15.000 for a lawsuit to clean title, and it took around a year and many headicks to make it work.  Cash that I used to buy  the LLC: -$11.0000 (sep 2012)    Mortgage: -$64.000 (sep 2012) Mortgage payment (including piti expenses) -$636.31 (sep 2012) Value in (sep 2012) Rent: $1095 Mortgage -$549.47 Management: $109.5,   Cash Flow: $ Sold (2/11/2019): $150.000, Profit: $82,708.99 The estimated value of the property when I bought it was about $56.000...