Billionaires Dumping Facebook … Plus, Why you need to sell your mutual funds and fire your broker

Billionaires are dumping Facebook!

One of Forbes 400 youngest and smartest billionaires, Chase Coleman, of the $10 billion Tiger Global hedge fund dumped his entire stake in Facebook. That’s rights, he sold every single share he owned of Facebook.

And you still own it, or buy it!  I told you earlier this week.  Only buy Facebook if you short Linkedin against it.  In that case, you have a chance to make money.  Why?  At least, you are owning the least overvalued stock.

But listen, one of the richest and best hedge fund billionaires in the world sold all of his Facebook shares.   Consider this:  Chase Coleman employs analysts from Harvard, Stanford, MIT, etc. … and pays industry consultants hundreds of thousands of dollars to tell him what is going on with companies and stocks.

Yet you think by reading articles on the internet by English majors who never worked on Wall Street (i.e. Motley Fool ) or journalism majors who are 25 years old and never traded a stock (i.e Insider Monkey) that you will know more that a billionaire hedge fund manager with all of the resources in the world at his disposal?  Give me a break. Get real folks.

Okay, here’s a reality check …

1)    The mutual funds in your 401K stink.  They are too diversified.  They own hundreds of mega cap companies that never move.  Newsflash:  They want you to keep plowing your paychecks into these things so they can crush you on fees.  They get rich.  Not you.

2)    If your 401K or IRA is not up more than 15% this year, fire your broker, financial advisor, private banker, mutual fund manager, whatever these people call themselves.  The stock market is on fire.  The global central banks have given you a green light to buy stocks and make money.  Yet your scratch golfer broker probably has you in bonds and gold.  Tell him to quit golf and take some courses in finance and global economics.

I live and breathe markets and research.  That’s how you make money.  Being a scratch golfer does not make me money.  Being the best exerciser does not make me money.  Knowing how to read cues in markets and how to squeeze the vulnerable sheep in markets does!  Where are the vulnerable sheep now?  They are long gold.  They are short stocks.  They are short the dollar.  And they are long commodities.  They are positioned exactly the wrong way.

If you want to get rich, do what rich people do.  That’s what I do.  And that’s what I do for my subscribers in my research service, the Billionaire’s Portfolio.  It’s the only service that lets you invest alongside the world’s  greatest billionaire hedge funds and investors.  We have had three stocks that have gone up more than 100% in less than 8 months, but most importantly, by following the world’s greatest investors, our portfolio is up nearly 17% in less than eight months (and for most of that time, we’ve been heavily in cash while we’ve been building the portfolio).

When we follow billionaire investors into stocks, we don’t gamble.  We are not making bets.  We know that these investors are going in with a plan to unlock value in that company — to produce a huge return for themselves.  When they do, they produce a huge return for us.

So join my service (click here).  Or stay poor and stay with the mutual fund companies that charge you high fees and give you singles digit returns.

Will Meade

Editor of The Billionaires Portfolio