Was Warren Buffett Lucky When He Made A $2.75 Billion Profit Investing In Freddie Mac?

Warren Buffett said during Congressional testimony last October that he bought stock in Freddie Mac in the 1980s because "it looked ridiculously cheap".

He said his company became one of Freddie Mac's largest shareholders before he began liquidating its stake in the late 1990s at an eventual profit of about $2.75 billion.

So did Buffett bail because he saw all the dumb mortgages Freddie Mac was making? Nope.

He bailed because Freddie Mac made an investment unrelated to its mission. He wasn't clear, according to WaPo, on the specifics but said he "didn't think that made any sense at all" and "was concerned about what they might be doing . . . that I didn't know about."

Luck or a good sixth sense? We'll let you decide.

In April 1999, it closed at $62.63 per share. Today, it closed at $7.75 per share.