How a Little-Known Conglomerate Could Make You Richer
Berkshire Hathaway isn't the only conglomerate from Nebraska that's compounding shareholder money. Nelnet (NYSE: NNI), a diverse Lincoln, Nebraska financial company, has a federally guaranteed stream of money coming in that's getting put to work in other places. Between its steady stream of cash and its other businesses, Nelnet has promising upside for investors willing to explore off the beaten path.
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Nelnet used to originate student loans and earn money through interest payments from the borrowers. Since 1965, when the federal government announced that it would guarantee student loans, the underwriting business for student loans has been highly lucrative. However, in 2010 the Health Care and Education Reconciliation Act stopped commercial enterprises from writing these loans. Nelnet could no longer originate and loan money at its preferred interest rate. But just because Nelnet couldn't lend money doesn't mean it stopped making money.
Source Fool.com
