THE LITTLE BLACK

BOOK OF
BILLIONAIRE’S
SECRETS
HOW TO TURN $20K
INTO $26 MILLION IN 12 YEARS
OR
$1.2 BILLION IN 30 YEARS

Will Meade
The Little Black Book of Billionaire’s Secrets
How you can turn $20k into $26 million in 12 years
Or $1.2 BILLION in 30 years

By Will Meade

©2012. All Rights Reserved. No part of this E-Book may

be reproduced or distributed without the written
consent of Logic Fund Management, Inc.

Logic Fund Management, Inc.

©2012 Logic Fund

Management, Inc. All 2
Rights Reserved.
 Table of Contents
About the Author.............4
Introduction.............5
Why You’re not a Billionaire…....6
Break Away from the Herd.............11
What Billionaires Do Differently…........13
Examples..........17
How to make $26 Million Following the Best..........20
Summary….......24

Disclaimer
The Little Black Book of Billionaire’s 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.
About the author
Will Meade runs Pure Alpha Research, a hedge fund consulting firm out of
Chicago. He provides research to some of the top hedge funds and
sophisticated investors in the world.

He has a Master's in Applied Economics from Johns Hopkins, where he was

also a PhD candidate. And he is a hedge fund veteran.

Early in Will’s career, he worked as the right-hand man for a hedge fund run
by a former Goldman Sachs partner. It was there, that he realized that
power and influence was the recipe for making big money in the stock market – period! And
he learned that the cards were stacked squarely against everyone else.

Now, he has a new personal challenge. He wants to prove that individual investors can
achieve the same type of wealth, from using the identical strategies that have
generated multi-billion dollar wealth for elite investors.

©2012 Logic Fund

Management, Inc. All Rights 4
Reserved.
 Introduction

Have you ever wondered how billionaires

invest their money? How they continue to
get RICHER, while the rest of the world is
struggling?

I study billionaires for a living. To be more

specific, I study how these investors
“BILLIONAIRE generate such huge and consistent profits in
the stock markets -- year-in and year-out.
INVESTORS HAVE
GIVEN US THE For more than a decade, I've trudged through
CLEAR ROADMAP every single stock that my favorite billionaire
investors have bought. And what I have found
TO FOLLOW is truly amazing.
THEIR FOOTSTEPS
Consider this: If you would have followed the
TO WEALTH lead of these billionaire investors, buying the
CREATION” same stocks they buy, you could have made an
amazing 42 percent annualized return on your
money. Conversely, the long run return on the
Will Meade S&P 500 is just 8 percent.

But even more incredible: If you followed the

stock picks of these brilliant investors, but
waited to buy them only after they dipped 33
percent BELOW what these billionaires paid
for their shares, you could have made 82
percent a year over the past 12-years. That's
82 percent a year, while the broader stock
©2012 Logic Fund
Management, Inc. All Rights 5
Why You’re Not
a Billionaire
market experienced the worst performance
in history.

For perspective, 12-years ago, if you would have

invested only $20,000 in this strategy of
following the world's best billionaire investors,
you could have $26 million today ...

“BILLIONAIRES
That's $26 million
DON’T GAMBLE, for every $20,000 invested.
THEY BET ON
Alternatively, for every $20,000 invested in the
SURE THINGS” S&P 500 for the same period, you would have just
$20,805.

Will Meade Why You’re Not a Billionaire

Average investors make a number of mistakes

that keep them poor. Much of it is due to a
total lack of education and understanding of
what investing is all about.

The Wall Street marketing machine has led

average investors to believe that active trading,
hot stocks tips and predicting market direction
is the golden ticket to wealth. In fact, it
produces the exact opposite.

Mistake #1: They think the stock market is

a good investment.
©2012 Logic Fund
Management, Inc. All Rights 6
Why You’re Not a
Billionaire
Inexperienced investors think they should be able to buy at bottoms, sell at
tops and make gobs of money. But that’s a highly difficult task.

The long-run annualized return for the S&P 500 (including dividends) is 8
percent. And after fees, most professional mutual fund managers do not beat
the S&P 500.

Moreover, too many investors do not understand the risk they’re asked to
take to achieve a 8 percent return.

The volatility of stock market returns is best measured by looking at the

dispersion of returns around the average return. This gives you a clue as to
how much risk you have to endure to achieve your expected return. It’s
called the standard deviation and is a good way to measure risk.

The standard deviation of the S&P 500 is 19 percent.

This means roughly 70 percent of the time, the S&P 500 should trade plus or
minus 19 percent around its long-term average return. So if you use standard
deviation as a gauge of risk, you’ll find that the broad stock market pays you
only 1 unit of return for 2 units of risk taken.

Take a look at these two hypothetical charts …

©2012 Logic Fund

Management, Inc. All 7
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Why You’re Not a
Billionaire
Both investments have an 8 percent average annual return. But Investment
#1 has a wide range of returns, while Investment #2 has a stream of returns
that more tightly hug the average annual return.

If each of the points on the charts represents a monthly return and both
investments achieve the same end result, which investment should you
choose?

The answer: Investment #2 — the one with the tighter distribution of returns
since it gives you a higher probability of achieving a higher return.

Here’s why: Your investment’s performance will largely depend on when you
enter and when you exit. If you enter or exit at any given point along the
path of Investment #2, the likelihood of success is greater than it would have
been with Investment #1.

So unless you think you can pick the exact bottom to enter and the exact top
to exit, you’re far better off finding investments that have a tighter
distribution of returns.

The bottom line is, a buy and hold strategy in the broader stock market index
just doesn’t compensate you for risk. It’s a bad investment. Stay away.

Mistake #2: Overtrading

I know a lot of very rich people. And I know a lot of very successful investors.
I can tell you this. None of them got rich day trading.

In fact, not only is day trading bad for your bank account, its bad for your
health. There’s a study by a prestigious Australian University that says every
hour you spend in front of a computer increases your risk of an early death by
11%. Think about that! The smartest and most successful investors think in
terms of risk vs. reward, in EVERYTHING they do!

©2012 Logic Fund

Management, Inc. All Rights 8
Reserved.
Why You’re Not
a Billionaire
A shortened life with less money is a bad trade –
don’t do it.

So stop trading!

And while your at it, cancel all your charting

packages, newspapers, data feeds and whatever
else you are spending your money on that puts
you a position where you have zero competitive
advantage. That stuff is for the herd – the
sheep.
“BILLIONAIRES
INVEST IN THINGS Warren Buffett only used a borrowed copy of
Valueline as his only tool. And he doesn’t
THEY KNOW … even pay for the $199 subscription.

WHERE THEY Cancel all these tools, software and gadgets and
HAVE AN EDGE” save yourself $2,000 to $3,000 a year.

Mistake #3: Trusting the wrong people

Will Meade
If you take away one thing from this book,
remember this: Your financial advisor-stock
broker is not your friend he is your enemy!

I say this with utmost respect as my dad was a

stock broker for 50 years. But lets be honest, stock
brokers have zero value anymore.

Sure, twenty years ago when there wasn’t

the internet or smart phones, you had to call
your broker to get a stock quote or make a
trade.

...
 ©2012 Logic Fund
Management, Inc. All Rights 9
Why You’re
Not a
Billionaire
Today, you can get stock quotes, currency quotes,
research, anything for free on the internet. So
fire your broker. You don’t need him. And get an
online brokerage account. It will cost you $5 a
trade.

I don’t want to belabor this point, but

think about this, the brokerage industry
does not produce investment minds, they
“BILLIONAIRE produce salesmen.
INVESTORS INVEST My point is this: In many cases (I would estimate
WHEN THEY CAN the majority of the cases) these people you trust
with your money are not experienced or educated
CONROL THEIR enough to watch over your money. Be aware of
that.
OWN DESTINY …
THEY DON’T Some of the more successful brokers in the world
have billions of assets under their control, yet
LEAVE THINGS TO they don’t have the qualifications to get an entry
level job at a sophisticated investment
CHANCE” management shop (a hedge fund or private
investment fund).

Will Meade To be clear, these guys are the sharks of the

human world. They only make money off you,
they get paid regardless of whether your
account goes up or down. They are like the evil
bankers. They add no value to society, except to
take money out of your pocket. Fire your Broker
Today!

Bottom line: Stay away from them and it will

save you easily 2% to 4% in fees per year. On a
$100,000 account that’s as much as $4000
more a year in your pocket.

...
 ©2012 Logic Fund
Management, Inc. All Rights
BREAK AWAY FROM THE HERD
... AND STAND ON THE
SHOULDERS OF BILLIONAIRES

©2012 Logic Fund

Management, Inc. All 11
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 How Billionaires …
Keep Getting Richer
You see, unlike the average investor, billionaire
investors don't stand by and let the global
Between a Billionaire Investor and You?
economic turmoil or restrictive policies destroy
their wealth.
… Power and
They pivot. And they capitalize!
Influence!
How?

It's not from focusing on the things they cannot

control. But by focusing on the things
they can control.

Let me explain ...

Billionaire investors have a unique advantage.

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 aren't 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 that's 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.
What Do Billionaires
Do Differently
When you buy as much as 5 ... 10 ...
even 15 percent of a company's
these lucrative investments that allow
stock,
my clients to piggy-back these investing
YOU are in the driver’s
giants. I do it for my own account.
seat. Management works for you!
HOW TO INVEST ALONGSIDE
It's this philosophy of taking
BILLIONAIRE INVESTORS
"controlling interest" in companies
WITHOUT HAVING A BILLION DOLLARS
that has allowed these big-time
investors to put up staggering returns,
You get ALL of the returns, but pay
year after year ... even in the worse
none of the fees. We let these brilliant,
economic climate in our life-times.
billionaire investors do all the work and
we reap the benefits.
To be clear, these are guys that built
their wealth by investing in these types
In short, through my extensive network of
of situations.
contacts in the hedge fund industry and
among the ultra-rich, I find out ...
They have track records that are
unmatched in investing. And their
> WHO the smartest and historically
bank accounts prove it.
best performing hedge funds are,
Now, if someone told you that you
> I find out WHAT they are buying,
could get an inside look at what is in
these billionaire's portfolios, wouldn't
> I tell YOU WHAT and WHEN they
you want to take a peak?
are buying,
Imagine how valuable it would be to
> YOU BUY WHAT THEY BUY!
know exactly what the richest, most
successful investors in the world
It's that simple.
have in their portfolios?
Consider this: These funds can often end
As a consultant to large hedge funds,
up owning as much as 60% of the
that's exactly what I do. I uncover
company's total outstanding stock. They
can't afford to be wrong!
How the Billionaire’s Secret
Can Work for You
 Wouldn’t You Like to Have a Billionaire
on Your Side?
Let's start with GGP That's a huge winner. And it also
demonstrates the appeal of buying
This one is of the “home run” variety. low priced stocks, which much of
They certainly don't come like this all these guys like to do.
the time, but when they do it's a lot of
fun. You get more bang for your buck.

Next, Dollar Thrifty …

Insert chart
My guy was buying these shares, as
the world was falling apart, between
25 cents and 50 cents. (Editor's note:
the blue box in the charts represent
where the funds were found acquiring
the stock). This chart really exemplifies why
you need to follow billionaire
So the world is imploding, and he's investors.
pouring hundreds of millions of dollars
into a penny stock – THAT GETS MY Dollar Thrifty, a car rental
ATTENTION! company, was very near
bankruptcy. Let me restate that …
This stock went up 46-fold! this company was teetering on the
edge of collapse.
For those that might be slow doing
the math, I understand. But that's The investor I followed stepped-in
$460k for every $10k invested. and bought millions of shares of DTG
around 35 to 45 cents a share. That
gave him controlling interest in the
company.

Once he had control, he knew that he

could impose his will on the company
 Wouldn’t You Like to Have a Billionaire
on Your Side?
and turn it around. Believe it or not,
this was one of those sure thing
investments for him.

A year later, two different car

rental companies tried to buy DTG.

This investment ended up

returning over 8,000%. That would 8,000%
turn a
$10,000 investment into more than
Winner!
three-quarters of a million
dollars!!!
Stock picks
The interesting thing about these
opportunities is that you don't have that
to can make you a MILLIONA
be a sophisticated investor to invest
like one. They do all of the work. They … OVERNIGHT
pay all of the experts. And the
average guy can get all of the benefits
just by following along.

.
Doubles, Triples
and Beyond
Take a look at Pulte Homes, now.
The guy that was involved in this stock, has one
of the greatest long-term-track records of any
hedge fund manager in the business. He's
averaged over 35% a year for the past 20 years.
And he's now worth about $5 billion.

In this case, he became bullish on

homebuilding stocks around mid
2011.

His approach: To bet on a rebound in housing,

he wanted to find the cheapest stock in the
sector. He bought the one 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 purchased millions of shares

Carl Icahn
One of the great
Billionaires
investors
around $4.25. The stock went up 200% in less than a
year.

This is another example of the way these billionaires

trade. They want low priced stocks, because it gives
them the opportunity to make multiples of their
money

invested. And you can see in many of these cases,

it doesn't take long after they've built their stakes,
for these stocks to start running higher.

Another? How about this stock, Western Refining …

Here is another example of one of these big-time

billionaire investors buying a stock below book value.

I found him buying millions of shares in this

gasoline refiner at around $4.

He knew that if gasoline prices recovered, this

stock would generate a huge return. Less than a
year, the price of gasoline jumped. And the stock
more than tripled!
Finally, let's take a
look at AOL.

The guys involved in this

play are bulldogs. They
buy a controlling
interest in a company,
and then they like to
force management to
sell assets. In turn, they
manufacture a return on
their investment.
And that's exactly what they did with AOL. They forced the company to sell
their patents to Microsoft, for more than the company's market cap! The
result …

A DOUBLE in about eight months.

This AOL example shows you that this type of investing can be done with
even well known, large cap stocks.

Now, I can assure you, the above examples are just a very small sample.

This is what this type of investing is all about. It's about consistent big
winners.
Follow The It's about getting a partner on your side
that is hell-bent on making money – big
Billionaires money … and that's what these hedge
funds that I follow represent.
It’s like car-
pooling with a They have to be right. They get
paid when they are right.
billionaire.
And these plays all have to work out
They drive and within their time frame - which is inside
we get a free ride. 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 can't 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 take control of … to unlock value,
to impose their will.

And their will is very clear: To make money

... a lot of it.

In all of my years of experience

working this industry, I’ve narrowed
down my investing strategy to three
simple steps:

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e Just follow the best the rest is easy.

p 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 don’t.
#
©2012 Logic Fund
3 Management, Inc. All

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Rights Reserved.
Follow the BEST!
They put up huge returns every year regardless
of what the market does.

Just one of these stocks could let you retire rich. WARNING:
Most importantly, this type of investing lets you A lot of people
enjoy your life. Instead of staring at screens all
day, take a walk, play golf, fish, play with your want to offer
kids. Get rid of those computer screens that are
killing you. you advice on
Put simply, following the worlds greatest
how to
billionaire investors can put you on the same path manage your
to becoming rich.
money.
Keep I mind those S&P 500 long run returns I
mentioned earlier. A measly 8% per year with
The BEST
loads of risk. Now, look at these returns from investors ONLY
some of the great billionaire investors of our time.
surround
Carl Icahn has put up 53% per year over the
past 20 years. themselves
John Burbank has returned 50% per year
with proven
since 2000. winners who
David Tepper has made 41% per year since 1993. have
The most amazing thing about all of these great
personally
investors is that they made these incredible demonstrated
returns simply buying stocks. That’s it, just
publicly traded companies that you and I can success!
click a button and buy.

©2012 Logic Fund

Management, Inc. All 21
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Follow the BEST …
In these cases, you are buying a stock with a
huge potential return, but limited risk. This is
key.

For example, take Lone Pine Resources(LPR), a

deeply undervalued Oil and Gas Stock. Here, we
have a stock that possesses ”asymmetrical
risk.” This is what great investors LOVE to see.

Here’s what I mean … “Great

Lone Pine sells for $1.50 a share and has a
billionaire hedge fund investor who is pushing this
Investors LOVE
could go back to its previous high of $8 a share Asymmetric Risk”
company to create shareholder value. The stock

with some influence from its biggest investor. That

would be a huge 430% return.

Now, on the other hand, the downside of the

stock is that it could go to zero. But even if the
stock went to zero you can only lose 100%. I
should say, this rarely, if ever, happens when a
billionaire hedge fund manager owns more than
10% of a stock.
Will Meade
So if the world falls apart you only lose 100%. If
things go right you have prospects of 400% or
more. That’s a 4 to 1 risk reward trade. And trust
me, there aren’t a lot of investments that offer
that scenario. That is why the best investors like
stocks that have this ASYMMETRICAL RISK TO
REWARD opportunities.
Follow the BEST
… And BUY THE
DIP!
Before I go on, I want to emphasize the extreme value of these types of returns I
just mentioned.

The difference between 50% per year and 8% per year, when you account for the
compounding effect over years of time is extraordinary. It’s the compounding
effect of those types of returns that builds wealth. And that’s exactly why these
guys are billionaires.

This is exactly why I’ve chosen to align my financial future and my career with
these proven investors.

In fact, I’ve done, to my knowledge, the most thorough research on the investing
performance of billionaire investors and activist investors.

I have a huge database of investors and I have the good fortune of having access
to the most sophisticated and expensive technology that Wall Street has to offer.
Plus, I have a very lucrative network of contacts, among them, some of these
billionaire investors themselves.

In short, over the years I’ve tested portfolios of these top managers through
millions of iterations, and I’ve narrowed down my top guys – my team. And I
went back through every single stock pick these guys made over the past 25
years. What I found was truly amazing.

The Research = Big Results

If you would have followed every single stock pick 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 twelve years would have
returned you 82% a year.
That’s buying the stocks they own a third cheaper than what they paid for
them. The results are huge!

That can turn $20k into $26 million in twelve years … or $20k into $1.2 billion
in 30 years. And don’t 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.

Summary on following page

Disclaimer
The Little Black Book of Billionaire’s 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.
Secrets of Billionaire
Investing
Summary
1) Billionaire investors bet on sure things.

2) They invest in things they know very well.

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

4) The billionaire’s secret of Wall Street is this: Only buy stocks that
the world’s best billionaire investors own.

5) But wait that’s not good enough. When possible buy these same stocks
at a discount to what these billionaire investors paid, and get an extra
kicker.

6) Hold these stocks, enjoy life and wait till they return 300 to 500% …
And then sell them (or do what I do, sell when the billionaire investors
sell).

7) Sit back and enjoy the power of compound interest.

8) If you do this, your $20,000 could be worth $26 million in 12 years.

9) Rinse and repeat.

My favorite billionaire
investor quote …
“You only need a few
ideas to be fabulously
wealthy”