I just finished reading the book “Why I quit Goldman Sachs” last night written by a former Goldman Sachs employee. First off if you have not read the book dont waste your time, its terrible, but there is one key point that the author made in the book that I wanted to talk about.
That is about insider information and deal flow. The author makes a great point about how all the traders at Goldman Sachs see all of the deal flow that is happenining in the markets they cover. This means Goldman Sachs as one of the largest and most important brokers and market makers in the world has all the biggest pension funds, mutual funds and hedge funds trade through their desk. So of course this means they can see what these funds are buying and sellling throughout the day. This gives them a huge information advantage over everyone else especially retail investors.
So this reiterates my point further about Apple ($APPL), as I have told you in posts before, all of the “smart money” has been dumping Apple stock for months, and everyone knows this who is “inside” meaning Goldman Sachs, while you have been buying they have beee shorting Apple since they are seeing huge mutual funds and pension funds slowly dump their entire Apple Position right in front of their face.
If you dont believe me just read the lastest article on Fidelity Contrafund in the Wall Street Journal, it is the world’s largest Mutual Fund with over $90 Billion, yes Billion in assets, and was one of the biggest holders of Apple. Well over the last 3 months Fidelity Contrafund, because it is so big, has been slowly dumping its Apple stock, to the point where it almost owns zero Apple. Now if you knew that the world’s largest mutual fund was going to be dumping millions of shares of Apple stock over a three month period would you still buy Apple? of course not, its like standing in from of a freight train!!
So get smart and find out what the “smart money” is doing with The Billionaires Portfolio at www.billionairesportfolio.com, we tell you what the world’s biggest Billionaire Investors and Hedge Funds are doing with their money. Dont run out in front of a speeding train by buying Apple because Fidelity and its $90 billion in assets will run you over, and that is exactly what has happened to retail investors who have tryed to buy Apple this year.
Editor of the Billionaires Portfolio