Wilbur Ross loves distress. When industries are suffering near death – such was the case with steel and textile mills – Ross has figured out creative ways to capitalize on things and, yes, make a tidy fortune.
His latest target? It's the mortgage sector.
No doubt, it's not easy to be bullish on this. But Ross' philosophy is that – where there is bankruptcy, there is opportunity.
So according to a story on Bloomberg, Ross is willing to pay a cool $435 million for loan servicing division of American Home Mortgage Investment Corp.
The servicing business is usually a cash cow and as a result, should be a good foundation for consolidating the industry.
As with any savvy investor, Ross looks to the long term. That is, he knows that mortgages are necessary. So why not buy up a big piece of the market when prices are dirt cheap?
Seems smart to me.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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Reader Comments (Page 1 of 1)
9-21-2007 @ 10:18PM
ann austin said...
I could use a buy out for my pest control company. Do you have an extra $200,000.
9-22-2007 @ 4:26PM
michael schneider said...
A synopsis of a somewhat vintage CNBC interview with Wilbur Ross is available free for those interested at http://www.Barreloworld.com.