Overview
- He said in a Substack post on Monday that he holds sizable common-stock positions in both mortgage finance giants.
- He projects IPO pricing near 1.0 to 1.25 times book value with potential trading at 1.5 to 2.0 times book within one to two years after listing.
- He described a “steep, windy and rocky” path to any offering because of regulatory and policy hurdles, leaving the timeline uncertain.
- Fannie Mae and Freddie Mac’s over-the-counter shares rose about 2.0% and 2.4%, respectively, following the disclosure.
- He suggested Berkshire Hathaway could take a substantial stake in any offerings and emphasized the firms’ central role, noting they own or guarantee roughly 62% of U.S. mortgages.