Max Leisure

🇬🇧🇺🇸 On advice of His Majesty’s Government, and at the invitation of The President of the United States, The King and Queen will undertake a State Visit to the United States of America. Their Majesties’ programme will celebrate the historic connections and the modern bilateral relationship between the UK and the US, marking the 250th anniversary of American Independence. 🇧🇲 The King will continue to Bermuda to undertake His Majesty’s first Royal Visit as Monarch to a British Overseas Territory.

Although Berkshire has not publicly expressed intent, buying large positions in Fannie Mae and Freddie Mac would align with Warren Buffett's value-investing philosophy. First, the GSEs enjoy a powerful, government-backed economic moat as the dominant duopoly in U.S. mortgage securitization, much like the near-monopoly advantages Buffett highlighted when he bought them decades ago, creating a durable competitive edge with predictable fee-based earnings from guaranteeing conforming loans. Second, the stocks trade at a steep discount to their potential intrinsic value (a "margin of safety"), especially when recapitalized and released from conservatorship, allowing them to retain profits and pay dividends rather than sweep them to the Treasury. This mirrors Buffett's preference for buying high-quality businesses at bargain prices with significant upside. Third, their core business is simple and understandable (mortgage credit guarantees with historically low loss rates on conforming loans), fitting Buffett's circle-of-competence rule and his long-term focus on cash-generating enterprises rather than speculative growth.