The OTC-traded common shares of Fannie Mae are up over 750% over the past 12 months but have plummeted during the past several days of trading. Is this a pure speculation play, or is there actually opportunity for Foolish investors?

In this video, Motley Fool financial analysts Matt Koppenheffer and David Hanson answer with a resounding "No!" Matt and David remind investors what these shares are entitled to and why investing in them may cause investors to lose sleep at night.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

The article Fannie Mae's Stock-Market About Face originally appeared on Fool.com.

David Hanson has no position in any stocks mentioned. Matt Koppenheffer has no position in any stocks mentioned.  You can follow  David  and  Matt  on Twitter.  The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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bps163

Well I must agree with the video ! It's man out window time for Fanny & Freddie, in other words take the money win or lose and run.

May 31 2013 at 2:55 PM Report abuse rate up rate down Reply