In his opinion, Federal Home Loan Mortgage Corp., otherwise known as Freddie Mac, is just such an opportunity. A quasi-public corporation like its older cousin Fannie Mae (the Federal National Mortgage Association), it earns an impressive 23% return on equity and sells for less than eight times estimated 1988 earnings. “Freddie Mac is a triple dip,” says Buffett. “You’ve got a low price/earnings ratio on a company with a terrific record. You’ve got growing earnings. And you have a stock that is bound to become much better known to equity investors.”
