What is Bill Ackman (Trades, Portfolio)'s favorite investment today?
Fannie Mae (FNMA, Financial) / Freddie Mac (FMCC, Financial) common stock. He thinks these stocks have enormous upside and he actually feels a bad outcome is very unlikely.
The reason for his confidence is that the U.S. government can't set the precedent of taking 100% of the profits of a corporation forever.
Ackman also believes that Fannie and Freddie are going to be integral parts of the U.S. housing industry going forward.
These two gentlemen have lots more to say in the interview below:
