THE LITTLE BLACK

BOOK OF
BILLIONAIRE
SECRETS
How to turn
$20k into $26 million in 12 years
or $1.2 billion in 30 years

By Bryan Rich

FORBES BILLIONAIRES PORTFOLIO
TABLE OF CONTENTS

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

Forbes Billionaires Portfolio

 Join
FORBES BILLIONAIRES PORTFOLIO
Manage Your Portfolio
Like A Billionaire Investor

Break away from the herd.

Invest alongside the worlds best investors.
Get the billionaire advantage.
Stocks that can double and triple.

Forbes Billionaire's Portfolio helps average

investors invest alongside Wall Street billionaires,
uncovering the best ideas from the best
billionaire investors and hedge funds.

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INTRODUCTION
Have you ever wondered how performance in history.
billionaires invest their money? How
they continue to get RICHER, while the For perspective, 12 years ago if you
rest of the world is struggling? would have invested only $20,000 in
this strategy of following the worlds
We study billionaires for a living. To best billionaire investors, you could
be more specific, we study how these have $26 million today ...
investors generate such huge and
consistent profits in the stock markets Thats $26 million
year-in and year-out. for every $20,000 invested.

For more than a decade, weve trudged Alternatively, for every $20,000 invested
through every single stock that our in the S&P 500 for the same period, you
favorite billionaire investors have would have just $20,805.
bought. And what we have found is
truly amazing.

Consider this: If you would have

followed the lead of these billionaire
Billionaire
investors, buying the same stocks they
buy, you could have made an amazing
investors have
42% annualized return on your
money. Conversely, the long run return
given us the clear
on the S&P 500 is just 8%. roadmap to follow
But even more incredible: If you their footsteps to
followed the stock picks of these
brilliant investors, but waited to buy wealth creation.
them only after they dipped 33%
BELOW what these billionaires paid
for their shares, you could have made
82% a year over the past 12-years.
Thats 82% a year, while the broader
stock market experienced the worst
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Forbes Billionaires Portfolio
WHY YOU ARE NOT A BILLIONAIRE
Average investors make a number of The volatility of stock market returns
mistakes that keep them poor. Much of is best measured by looking at the
it is due to a total lack of education and dispersion of returns around the
understanding of what investing is all average return. This gives you a clue as
about. to how much risk you have to endure to
achieve your expected return. Its called
The Wall Street marketing machine the standard deviation and is a good
has led average investors to believe way to measure risk.
that active trading, hot stocks tips
and predicting market direction is The standard deviation of the S&P 500
the golden ticket to wealth. In fact, it is 19%.
produces the exact opposite.
This means roughly 70% of the time,
the S&P 500 should trade plus or minus
THEY THINK THE STOCK 19% around its long-term average
#1 MARKET IS A GOOD return. So if you use standard deviation
MISTAKE as a gauge of risk, youll find that the
INVESTMENT broad stock market pays you only 1
unit of return for 2 units of risk taken.
Inexperienced investors think they
should be able to buy at bottoms, sell at
tops and make gobs of money. But thats
a highly difficult task.
Billionaires invest
The long-run annualized return for
the S&P 500 (including dividends) is
in things they know
8%. And after fees, most professional ... where they have an
mutual fund managers do not beat the
S&P 500. edge.
Moreover, too many investors do not
understand the risk theyre asked to
take to achieve an 8% return.

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Forbes Billionaires Portfolio
Take a look at these two hypothetical Heres why: Your investments
charts 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.

return gamble - they bet on The bottom line is, a buy

and both
investments
sure things. and hold strategy in the
broader stock market
achieve the index just doesnt
same end compensate you for risk.
result, which Its a bad investment.
investment should you choose? Stay away.

The answer: Investment #2 the one

with the tighter distribution of returns
since it gives you a higher probability of
achieving a higher return.
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Forbes Billionaires Portfolio
 Sure, 20 years ago when there wasnt
#2
MISTAKE OVERTRADING the Internet or smartphones, you had to
call your broker to get a stock quote or
I know a lot of very rich people. And I make a trade.
know a lot of very successful investors.
I can tell you this. None of them got Today, you can get stock quotes,
rich day trading. currency quotes
and research,
In fact, not only can day trading be bad on the Internet.
for your bank account, it can be bad So think twice
for your health. Theres a study by a before you hire
prestigious Australian University that a broker. Many
says every hour you spend in front of a investors are
computer increases your risk of an early savvy enough
death by 11%. Think about that! The to use an
smartest and most successful investors online brokerage In 2015, Warren
think in terms of risk vs. reward, in account, which Buffetts net worth is
EVERYTHING they do! can cost $5 a $66.7 billion.
trade.
A shortened life with less money is a
bad trade dont do it. I dont want to belabor this point,
but think about this: the brokerage
industry does not produce investment
minds, it produces salesmen.
#3 TRUSTING THE
MISTAKE WRONG PEOPLE My point is this: In many cases (I
would estimate the majority of the
If you take away one thing from this cases) these people you trust with
book, remember this: Your financial your money are not experienced or
advisor-stock broker is not your educated enough to watch over your
friend. money. Be aware of that.

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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Forbes Billionaires Portfolio
 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.

8
Forbes Billionaires Portfolio
 BREAK AWAY FROM THE HERD
AND STAND ON THE SHOULDERS OF
BILLIONAIRES
9
Forbes Billionaires Portfolio
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 pivot. And they capitalize! Whats the

How? difference
Its not from focusing on the things they cannot between a
control. But by focusing on the things they can
control. billionaire
Let me explain ... investor and
Billionaire investors have a unique advantage. you?
Of course, they have a lot of money. But with
money, comes power and influence.

Unlike mutual fund managers, financial

advisors and the rest of Wall Street and Main
Street, these billionaires arent in the business of guessing about what may or may
not happen with a company, and its stock. They are in the business of sure things.
They like to control their own destiny. And thats precisely what drives the way
they invest.

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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Forbes Billionaires Portfolio
WHAT BILLIONAIRES DO DIFFERENTLY
When you buy as much as 5% ... 10% ... even 15%
of a companys stock, YOU are in the drivers seat.
Management works for you!

Its this philosophy of taking controlling interest

in companies that has allowed these big-time
investors to put up staggering returns, year after
year ... even in the worst economic climate in our
life-times.

To be clear, these are guys that built their wealth

If someone told by investing in these types of situations.
you that you could
They have track records that are unmatched in
get an inside investing. And their bank accounts prove it.
look at what is in
Now, if someone told you that you could get
these billionaires an inside look at what is in these billionaires
portfolios, wouldnt you want to take a peek?
portfolios, wouldnt
you want to take a Imagine how valuable it would be to know exactly
what the richest, most successful investors in the
peek? world have in their portfolios.

As a consultant to large hedge funds, thats exactly

what I do. I uncover these lucrative investments
that allow my clients to piggy-back these investing
giants. I do it for my own account.

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Forbes Billionaires Portfolio
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.

In short, through my extensive network of contacts in the hedge fund

industry and among the ultra-rich, I find out...

WHO the smartest and historically best

performing hedge funds are

I find out WHAT they are buying

I tell YOU WHAT and WHEN they are buying,

YOU BUY WHAT THEY BUY!

Its that simple.

Consider this: These funds can often end up owning as

much as 60% of the companys total outstanding stock.
They cant afford to be wrong!

CLICK HERE TO LEARN MORE

 HOW THE BILLIONAIRES
SECRET CAN WORK FOR YOU
WOULDNT YOU LIKE TO HAVE A BILLIONAIRE ON YOUR SIDE?
Lets start with GGP. demonstrates the appeal of buying low
priced stocks, which much of these
This one is of the home run variety. guys like to do.
They certainly dont all come like this,
but when they do its a lot of fun. You get more bang for your buck.

Next, Dollar Thrifty

My guy was buying these shares, as the

world was falling apart, between 25 This chart really exemplifies why you
cents and 50 cents. (Editors note: the need to follow billionaire investors.
blue box in the charts represent where Dollar Thrifty, a car rental company,
the funds were found acquiring the was very near bankruptcy. Let me
stock). restate that this company was
teetering on the edge of collapse.
So the world is imploding, and hes
pouring hundreds of millions of dollars The investor I followed stepped-in
into a penny stock THAT GETS MY and bought millions of shares of DTG
ATTENTION! around 35 to 45 cents a share. That
gave him controlling interest in the
This stock went up 46-fold! company.

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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Forbes Billionaires Portfolio
WOULDNT YOU LIKE TO HAVE A BILLIONAIRE ON YOUR SIDE?
A year later, two different car rental
companies tried to buy DTG.

This investment ended up returning

over 8,000%.

That would turn a $10,000 investment

into more than three-quarters of a
million dollars!

The interesting thing about these

opportunities is that you dont have to
be a sophisticated investor to invest
8,000% winner!
like one. They do all of the work. They
pay all of the experts. And the average
guy can get all of the benefits just by
following along.
Stock picks that
can make you
a millionaire...
overnight!

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Forbes Billionaires Portfolio
DOUBLES, TRIPLES, AND BEYOND
Take a look at Pulte Homes, now. $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 $5 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.

Pulte is a member of the S&P 500, and

was one of the few stocks in the S&P
500 index that sold below book value
and under $5 a share. So he dove in. He
WESTERN REFINING
purchased millions of shares around

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Forbes Billionaires Portfolio
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

I found him buying millions of shares A DOUBLE in about eight months.

in this gasoline refiner at around $4.
This AOL example shows you that this
He knew that if gasoline prices type of investing can be done with even
recovered, this stock would generate a well known, large cap stocks.
huge return. Less than a year later, the
price of gasoline jumped. And the stock Now, I can assure you, the above
more than tripled! examples are just a very small sample.
This is what this type of investing is all
Finally, lets take a look at AOL. about. Its about consistent big winners.

Its about getting a partner on your

side that is hell-bent on making money
big money and thats what these
hedge funds that I follow represent.

They have to be right. They get paid

when they are right.
AOL

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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Forbes Billionaires Portfolio
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!

So they cant sit and wait five years for an

investment to work out, like a mutual fund
or endowment might.

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:

And their will is very clear: To make I find out who

money ... a lot of it. 1 the best are
In all of my years of experience working
I find out what
this industry, Ive narrowed down my 2 theyre buying
investing strategy to three simple steps:
I buy what they
Step #1: I find out who the best are 3 buy
Step #2: I find out what theyre buying
Step #3: I buy what they buy
Just follow the best
Just follow the best and the rest is easy. and the rest is easy.

These guys are rich because they control

their own destiny. They do all the work
for you. They put their own money on the
line.. Brokers, mutual funds dont.

18
Forbes Billionaires Portfolio
 Join
FORBES BILLIONAIRES PORTFOLIO
Manage Your Portfolio
Like A Billionaire Investor

Break away from the herd.

Invest alongside the worlds best investors.
Get the billionaire advantage.
Stocks that can double and triple.

Forbes Billionaire's Portfolio helps average

investors invest alongside Wall Street billionaires,
uncovering the best ideas from the best
billionaire investors and hedge funds.

CLICK HERE TO LEARN MORE

FOLLOW THE BEST!
They put up huge returns every year stocks. Thats it, just publicly traded
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 limited risk. This is key.
staring at screens all day, take a walk,
play golf, fish, play with your kids. Get 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 risk. This is what billionaire investors
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.

The most amazing thing about all of

these great investors is that they made
these incredible returns simply buying

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Forbes Billionaires Portfolio
FOLLOW THE BEST!
Heres what I mean

The key success factors in the

billionaire investor campaigns I follow
are: 1) high conviction, 2) spinoffs
and 3) CEO change.
Great investors
In the case of Hertz, we have the
trifecta. Billionaire Carl Icahn owns
LOVE asymmetric
35% of Hertz. High conviction: check!
Add to this, Icahn walked into Hertz
and pushed the company to spin off
risk
its equipment rental. Thats now done!
Spinoff: check! In Hertz Global, Icahn
now has a pure play on the rental care
business. What about CEO change?
Icahn recently forced out the CEO
and replaced him with his hand selected
hired gun. CEO change: check!

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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Forbes Billionaires Portfolio
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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Forbes Billionaires Portfolio
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 Buffett has famously said,
can see some common traits that have you only need one or two great ideas a
made Carl Icahn the worlds greatest year to get rich. This is exemplified in
investor: Icahns portfolio. His big win on Netflix
garnered a 463% return in just 12
The media, mutual funds, CNBC, months, between 2012 and 2013.
finance books they all say having
a high win rate is paramount to good Patience is king. You dont
investing. They tell you that the most TRAIT have to go to Harvard or
important thing is being right. Like #3 have a Goldman Sachs
many widely accepted adages, it investing pedigree to have
happens to be dead wrong. Billionaire patience. And many times, that can be
iconic hedge fund investor, George the difference between making money
Soros, says its not whether youre right and losing money in investing. Icahn
or wrong, but how much money you has an average holding period of over
make when youre right and how much two years.
money you lose when youre wrong.
When you hunt for
Over the past 20 years, the stocks in TRAIT big returns, you must
Icahns portfolio have a win rate only #4 be willing to accept
a tad bit better than a coin toss. But he drawdowns and losers.
puts himself in position, so that when Icahn has multiple stocks over the
he wins, he has the chance to win big! past 20 years that have been full losers
(i.e. they went to zero). But when you
They like to invest in have a portfolio full of stocks with big
TRAIT opportunities with potential, and a change agent at work,
#1 limited risk and huge
in the end the big winners can more
potential return.
than pay for the losers.
Among Icahns stocks, his winners were
almost twice that of his losers. Want to invest like the greatest investor
of all-time?
23
Forbes Billionaires Portfolio
HOW TO MAKE $26 MILLION
Before I go on, I want to emphasize the extreme value
of these types of returns I just mentioned.
The
The difference between 50% per year and 8% per year,
when you account for the compounding effect over difference
years of time is extraordinary. Its the compounding between 50%
effect of those types of returns that builds wealth. per year and
And thats exactly why these guys are billionaires.
8% per year,
This is exactly why Ive chosen to align my financial when you
future and my career with these proven investors. account for the
compounding
In fact, Ive done, to my knowledge, the most
thorough research on the investing performance of effect over
billionaire investors and activist investors. years of time is
extraordinary.
I have a huge database of investors and I have
the good fortune of having access to the most
Its the
sophisticated and expensive technology that Wall compounding
Street has to offer. Plus, I have a very lucrative effect of
network of contacts, among them, some of these
those types of
billionaire investors themselves.
returns that
In short, over the years Ive tested portfolios of these builds wealth.
top managers through millions of iterations, and And thats
Ive narrowed down my top guys my team. And I
went back through every single stock pick these guys exactly why
made over the past 25 years. What I found was truly these guys are
amazing. billionaires.
The Research = Big Results

If you would have followed every single stock pick

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Forbes Billionaires Portfolio
these investors made over the past 25 years,
you would have returned an amazing 42% per
year on your money.

But this is even more impressive If you

bought the dip on these investors, the past
You only
12 years would have returned you 82% a
year.
need a few
Thats buying the stocks they own a third
cheaper than what they paid for them. The
ideas to be
results are huge!
fabulously
That can turn $20k into $26 million in
twelve years or $20k into $1.2 billion in wealthy.
30 years.

And dont forget, this is during the worst

single period ever in the history of the stock
market.

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.

SECRETS OF BILLIONAIRE INVESTING

Disclaimer

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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Forbes Billionaires Portfolio
7 SECRETS OF BILLIONAIRE INVESTING

1 Billionaire investors bet on sure things.

They invest in things they know very

well. 2
3 They want to be in situations where they
can control their own destiny.

Only buy stocks that the worlds best

billionaire investors own.
4
5
When possible, buy these same stocks
at a discount to what these billionaire
investors paid, and get an extra kicker.

6
Hold stocks until they return 300% to
500% - and sell them (or do what I do,
sell when the billionaire investors sell).

7 Sit back and enjoy the power of

compound interest.
 ABOUT THE AUTHOR

BRYAN RICH, FOUNDER Bryan is the founder of Logic Fund

Management, a macro-economic and global investment research,
consulting and advisory business. At Logic, he has advised hundreds
of thousands of investors from over 80 countries on global macro
investing issues.Prior to founding Logic, Mr. Rich was a senior trader
with Integra Investment Management, a 2005 nominee for Global
Macro Hedge Fund of the year. He started his career with Traval, a
family office macro hedge fund that managed assets for a wealthy
European family. He has worked in London and on Wall Street.He
also consults as an expert in global currency strategy, and has run
equity and economic research groups for a leading independent
research company. He holds an MBA from Rollins College.

27
 Join
FORBES BILLIONAIRES PORTFOLIO
Manage Your Portfolio
Like A Billionaire Investor

Break away from the herd.

Invest alongside the worlds best investors.
Get the billionaire advantage.
Stocks that can double and triple.

Forbes Billionaire's Portfolio helps average

investors invest alongside Wall Street billionaires,
uncovering the best ideas from the best
billionaire investors and hedge funds.

CLICK HERE TO LEARN MORE