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ENTITY
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David Maxwell
Summary
The highly successful CEO of Federal National Mortgage Association (Fannie Mae) during the late 1980s.
Timeline & Role
- 1988: Buffett visits him in Washington to confirm he wouldn't be uncomfortable with Berkshire taking a massive $350-$400 million position in Fannie Mae. Maxwell had "dealt superbly with some problems that he had inherited and had established the company as a financial powerhouse." Despite Maxwell's execution, Buffett's "thumb-sucking" led to Berkshire leaving $1.4B on the table. 1991 Letter
📚 Historical Mentions & Citations (1)
Click a reference document below to expand and read the exact paragraph(s) containing this concept in the archive.
📜1991 LetterExcerpt Available▼
1991 LetterExcerpt Available
Every writer knows it helps to use striking examples, but I wish the one I now present wasn’t quite so dramatic: In early 1988, we decided to buy 30 million shares (adjusted for a subsequent split) of Federal National Mortgage Association (Fannie Mae), which would have been a $350-$400 million investment. We had owned the stock some years earlier and understood the company’s business. Furthermore, it was clear to us that David Maxwell, Fannie Mae’s CEO, had dealt superbly with some problems that he had inherited and had established the company as a financial powerhouse—with the best yet to come. I visited David in Washington and confirmed that he would not be uncomfortable if we were to take a large position.