You will never beat the stock market, unless you listen to this.
Even with more than 15 years of hedge fund experience, and a decent education, I would never invest a dollar unless I knew for sure that one of the top billionaire investors or hedge funds owned the stock. It’s just that simple.
I’m sorry to break it to you, but you can’t beat the market trading on news, or your stock broker’s latest tips, or following the latest musings on CNBC. It’s a good way to lose a lot of money, though.
There are only about 35 truly great investors in the world, ones that have consistently outperformed the market over the past 10-15 years. Some of these names you may recognize, like Carl Icahn, David Tepper, Dan Loeb and Warren Buffett.
So why make investing so difficult? Just simply invest with the best!
That’s what I do. I don’t own a mutual fund or listen to a financial advisor. I just buy what Icahn, Loeb or Buffett buys.
And I go one step further. Since I have actually traded for a multi-billion dollar hedge fund, and I know how hard it is to buy a big position in a stock, and how long it takes, I know the world’s best investors are patient and accumulate stocks on corrections and dips. That means, many times, I have a chance to pay the same price or better than what these billionaire investors and hedge funds paid. I call it, “buying a billionaire on a dip.”
It just makes sense, doesn’t it?
For example, let’s say I know one of the top billion-dollar activist hedge funds, which has averaged 30% a year over the past 15 years, owns 10% of a stock and is down on that stock. And I know this particular fund’s average holding period is two years. Why wouldn’t I want to own that stock?
It’s simple. It’s a statistical bet that puts the odds in my favor. And that is the formula for making money over time. Plus it lets me sleep at night knowing a big, influential investor is working relentlessly on my behalf to create value.
So I don’t throw darts. I don’t try to predict the future. I just bet alongside those that have a lot of money on the line, the power and influence, and a record of making a lot of money.
At BillionairesPortfolio.com, all we do is track the 30 to 40 best billionaire stock pickers, activists and hedge funds. And we look to get involved in stocks where we can pay the same price or less than they pay. Pretty simple, right?
Our stock picks gained 34% in 2013. And my studies of “buying the best billionaire investors on a dip” have shown this strategy would have made 31% over the past 12 years. That compares to a 6% return in the S&P 500.
President of The Billionaires Portfolio