Billionaires Secrets PDF
Billionaires Secrets PDF
Billionaires Secrets PDF
BOOK OF
BILLIONAIRE
SECRETS
How to turn
$20k into $26 million in 12 years
or $1.2 billion in 30 years
Introduction ... 4
Why Youre Not A Billionaire ... 5
How Billionaires Get Richer ... 10
What Billionaires Do Differently ... 11
How to Invest Alongside Billionaires Without Having
A Billion Dollars ... 12
How to Have a Billionaire on Your Side ... 14
How To Make $26 Million ... 24
Seven Secrets of Billionaire Investing ... 26
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Take a look at the two hypothetical Heres why: Your investments
charts above performance will largely depend on
when you enter and when you exit.
Both investments have an 8% average If you enter or exit at any given point
annual return. But Investment #1 has a along the path of Investment #2, the
wide range of returns, while Investment likelihood of success is greater than it
#2 has a stream of returns that more would have been with Investment #1.
tightly hug the average annual return. So unless you think you can pick the
exact bottom to enter and the exact top
If each of the to exit, youre far better
points on off finding investments
the charts that have a tighter
represents
a monthly
Billionaires dont distribution of returns.
I say this with utmost respect as my And keep in mind that brokers get paid
dad was a stock broker for 50 years. But regardless of whether your account
lets be honest, stock brokers are not as goes up or down.
valuable as they once were.
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Bottom line: Stay away from them and it will
save you easily 2% to 4% in fees per year.
On a $100,000 account,
thats as much as $4,000 more
a year in your pocket.
Billionaire
investors invest
when they can
control their
own destiny...
they dont
leave things to
chance.
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BREAK AWAY FROM THE HERD
AND STAND ON THE SHOULDERS OF
BILLIONAIRES
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HOW BILLIONAIRES KEEP GETTING RICHER
You see, unlike the average investor, billionaire
investors dont stand by and let the global
economic turmoil or restrictive policies destroy
their wealth.
They find companies that have a clear need for a shake-up. Then, they buy enough
of the company to take control of the wheel.
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WHAT BILLIONAIRES DO DIFFERENTLY
When you buy as much as 15% ... 10% ... even 5%
of a companys stock, YOU are in the drivers seat.
Management works for you!
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HOW TO INVEST ALONGSIDE BILLIONAIRE INVESTORS
WITHOUT HAVING A BILLION DOLLARS
You get ALL of the returns, but pay none of the fees. We let these
brilliant billionaire investors do all the work and we reap the benefits.
For those that might be slow doing the Once he had control, he knew that he
math, I understand. Thats $460k for could impose his will on the company
every $10k invested. and turn it around. Believe it or not,
this was one of those sure thing
Thats a huge winner. And it also investments for him.
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WOULDNT YOU LIKE TO HAVE A BILLIONAIRE ON YOUR SIDE?
A year later, two different car rental
companies tried to buy DTG.
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DOUBLES, TRIPLES, AND BEYOND
Take a look at Pulte Homes. $4.25. The stock went up 200% in less
than a year.
This is
another
example of
the way these
billionaires
trade. They
PULTE HOMES want low
priced stocks,
because Carl Ichan is one of
the great billionaire
The guy that was involved in this stock it gives investors.
has one of the greatest long-term-track them the
records of any hedge fund manager in opportunity
the business. Hes averaged over 35% a to make
year for the past 20 years. And hes now multiples of their money.
worth about $16 billion.
And you can see, in many of these
In this case, he became bullish on cases, it doesnt take long after theyve
homebuilding stocks around mid-2011. built their stakes, for these stocks to
start running higher.
His approach: To bet on a rebound in
housing, he wanted to find the cheapest Another? How about this stock,
stock in the sector. He bought the one Western Refining
with the lowest book value, the lowest
share price and (this is key) the most
liquidity. He chose Pulte.
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DOUBLES, TRIPLES, AND BEYOND
Here is another example of one of these their patents to Microsoft, for more
big-time billionaire investors buying a than the companys market cap! The
stock below book value. result
The guys involved in this play are Its like car-pooling with
bulldogs. They buy a controlling
interest in a company, and then they
a billionaire. They drive
like to force management to sell assets.
In turn, they manufacture a return on
and we get a free ride.
their investment.
And these plays all have to work out
And thats exactly what they did with within their time frame which is
AOL. They forced the company to sell inside
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DOUBLES, TRIPLES, AND BEYOND
of a year, in most cases. After all, these
funds are competing for assets, but
mostly for pride ... and annual returns are
everything!
They buy stocks that they know they can Ive narrowed down my
take control of to unlock value, to investing strategy to
impose their will. three simple steps:
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regardless of what the market does. Just companies that you and I can click a
one of these stocks could let you retire button and buy.
rich.
In these cases, you are buying a stock
Most importantly, this type of investing with a huge potential return, but
lets you enjoy your life. Instead of
staring at screens all day, take a walk,
For example, take Hertz (HTZ), a
rid of those computer screens that are deeply undervalued market leading
killing you. car rental company. Here, we have a
stock that possesses asymmetrical
Put simply, following the worlds
greatest billionaire investors can put LOVE to see.
you on the same path to becoming rich.
Keep in mind, those S&P 500 long run
returns I mentioned earlier, a measly
8% per year, also come with loads of WARNING:
risk. Now, look at these returns from
some of the great billionaire investors A lot of people want to offer
of our time.
you advice on how to manage
Carl Icahn has put up 53% per year your money. The BEST investors
over the past 20 years.
ONLY surround themselves
John Burbank has returned 50% per with proven winners who have
year since 2000.
personally demonstrated
David Tepper has made 41% per year success!
since 1993.
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FOLLOW THE BEST!
Heres what I mean
Now, with the above in mind, consider this: HTZ is a left-for-dead stock,
without a doubt. But Uber is currently valued at 37 TIMES the value of Hertz.
Icahn is betting that the ride-sharing business hasnt killed Hertz. If hes right,
this stock is a multi-bagger. The most you can lose in any stock is 100%. This
is precisely what the best investors LOVE stocks that have this
ASYMMETRICAL RISK TO REWARD opportunity. Remember, hes not
just taking a bet, hes in control at Hertz.
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BUILDING YOUR OWN BILLIONAIRES PORTFOLIO
Weve talked about the value of Buffetts growth rate over that length
following the best. What about the best of time is indeed amazing too. But
OF the best? due to the power of compounding,
the wealth creation of Buffett, from
Ive studied the track records of pure investment returns, pales in
hundreds of billionaire investors and comparison to that of Icahn.
billion-dollar hedge funds. And one
man stands above the rest, as the best Icahns investment skill has created
investor alive. Im sure most would $65 to every $1 created by Buffett.
consider it to be Warren Buffett. But
the numbers tell a different story. In So how has Icahn been able to
fact, the greatest investor of all-time is outperform Warren Buffett (and the
billionaire activist Carl Icahn. broad stock market) by so much and
for so long?
Incredibly, both
Icahn and Buffett Of course, Icahn is a dogged
have been building shareholder activist and often an
their respective agitator of corporate management. Key
investment empires to his playbook is using power and
for over five influence to control his own destiny
decades. And more on stocks he invests in. In a study
In 2015, Carl Icahns
net worth is incredibly, they he published last year, Icahn called
$21.3 billion. remain at the top attention to the power of the board
of their profession. seat. Looking back on a recent five-year
But Icahn has, unequivocally, shown period, Icahn showed that when he
superior skill as an investor. secured a board seat on a company in
his portfolio, he was able to create value
Consider this: Icahn has returned for shareholders to the tune of a 27%
31% annualized since 1968. That gain, on average. Thats controlling your
would turn every $1,000 invested with
Icahn into $325 million today an Icahns investment skill has
incredible number. Buffett, on the other
created $65 for every $1
hand, returned 19.5% annualized
created by Buffett.
during virtually the same time period.
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BUILDING YOUR OWN BILLIONAIRES PORTFOLIO
own destiny. Icahn became rich by
TRAIT taking concentrated bets
Additionally, when we look strictly #2 throughout his career. As
across the stocks in his portfolio, we
can see some common traits that have you only need one or two great ideas a
made Carl Icahn the worlds greatest
investor.
garnered a 463% return in just 12
months, between 2012 and 2013.
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these investors made over the past 25 years,
you would have returned an amazing 42% per
year on your money.
Those are big numbers. And guess what. It can be done. There is living proof right
in front of us, with every one of these self-made billionaire investors.
The Little Black Book of Billionaire Secrets is strictly an informational publication and does not
provide individual, customized investment or trading advice to its subscribers. Although many of
our analytical approaches are unique, they are based on publicly available data.
Any opinions, news, research, analyses, prices, or other information contained on this ebook
are provided as general market commentary, and do not constitute investment advice nor a
solicitation. We are not liable for any loss or damage, including without limitation, any loss of
profit, which may arise directly or indirectly from use of or reliance on such information. We have
taken reasonable measures to ensure the accuracy of the information on the ebook. The content on
this ebook is subject to change at any time without notice.
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7 SECRETS OF BILLIONAIRE INVESTING
6
Hold stocks until they return 300% to
500% - and sell them (or do what I do,
sell when the billionaire investors sell).
27
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