Taking A Trip To Wall Street

My brother Caleb and I have decided to take our chances in the stock market. Caleb wants to make some quick money, while I want to do some more long term investments. Caleb wants to buy General Motors (GM). Unfortunately for him, I won’t let him do that. He should have read my post about GM. I want to test my stock skills with Fannie Mae and Freddie Mac.

Yea, I can hear you know. Didn’t they collapse like four months ago? The answer to that is yes. But hear me out.

Fannie Mae and Freddie Mac (FNM and FRE, respectively) are at their all-time lows. FNM is selling at $0.40 a share, while FRE is at $0.56 a share. That is down from their 68 week highs of over $60 a share! My plan is to invest a small amount – $500 – on Fannie and Freddie. These are companies that cannot, and will not, completely collapse. Once they return to their old dominance (in 2-5 years), Caleb and I will be sitting on an over $50,000 return. If we decided to continue to put money into them, the sky is the limit.

Maybe the best part about the whole thing is while CNBC has their Maria Bartiromo analyzing stocks, I have my Mari Bartolomeo.