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 You’re 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
5
Forbes Billionaire’s Portfolio
Take a look at the two hypothetical Here’s why: Your investment’s
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, you’re far better
points on off finding investments
the charts that have a tighter
represents
a monthly
“Billionaires don’t distribution of returns.
A shortened life with less money is a I don’t want to belabor this point,
bad trade – don’t do it. 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 as a matter of fact – no And keep in mind that brokers get paid
disrespect intended. I’ve known a lot regardless of whether your account
of brokers throughout my career, and goes up or down.
still do.
7
Forbes Billionaire’s Portfolio
Bottom line: Stay away from them and it
will save you easily 2% to 4% in fees per
year. (probably more)
On a $100,000 account,
that’s as much as $4,000 more
a year in your pocket.
“Billionaire
investors invest
when they can
control their
own destiny...
they don’t
leave things to
chance.”
8
Forbes Billionaire’s Portfolio
BREAK AWAY FROM THE HERD
AND STAND ON THE SHOULDERS OF
BILLIONAIRES
9
Forbes Billionaire’s Portfolio
HOW BILLIONAIRES KEEP GETTING RICHER
You see, unlike the average investor, billionaire
investors don’t 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.
10
Forbes Billionaire’s Portfolio
WHAT BILLIONAIRES DO DIFFERENTLY
When you buy as much as 15% ... 10% ... even 5%
of a company’s stock, YOU are in the driver’s seat.
Management works for you!
11
Forbes Billionaire’s 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.
For those that might be slow doing the Once he had control, he knew that he
math, I understand. That’s $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”
That’s a huge winner. And it also investments for him.
14
Forbes Billionaire’s Portfolio
WOULDN’T YOU LIKE TO HAVE A BILLIONAIRE ON YOUR SIDE?
A year later, two different car rental
companies tried to buy DTG.
15
Forbes Billionaire’s Portfolio
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. He’s averaged over 35% a to make
year for the past 20 years. And he’s 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 doesn’t take long after they’ve
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.
16
Forbes Billionaire’s 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 company’s market cap! The
stock below book value. result …
The guys involved in this play are “It’s 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 that’s exactly what they did with within their time frame –which is
AOL. They forced the company to sell inside
17
Forbes Billionaire’s 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!
They buy stocks that they know they can I’ve narrowed down my
take control of … to unlock value, to investing strategy to
impose their will. three simple steps:
18
Forbes Billionaire’s Portfolio
Join
FORBES BILLIONAIRE’S PORTFOLIO
Manage Your Portfolio
Like A Billionaire Investor
Put simply, following the worlds For example, take Hertz (HTZ), a
greatest billionaire investors can put deeply undervalued market leading
you on the same path to becoming rich. car rental company. Here, we have a
Keep in mind, those S&P 500 long run stock that possesses ”asymmetrical
returns I mentioned earlier, a measly risk" This is what billionaire
8% per year, also come with loads of investors LOVE to see.
risk. Now, look at these returns from
some of the great billionaire investors
of our time.
WARNING:
In a fund offering document in 2004, A lot of people want to offer
Carl Icahn said he compounded money
at an annual rate of 48% between 1990 you advice on how to manage
and 1995. Between 1996 and 2004, the your money. The BEST investors
return jumped to 53% annualized.
From 1968 through 2011, Icahn ONLY surround themselves
generated a 31% annualized return. with proven winners who have
Joe Edelman has returned over 30% personally demonstrated
after fees since 1999. If you add back success!
his fees, he’s extracted an annualized
return from the market of better than
40% a year.
20
Forbes Billionaire’s Portfolio
FOLLOW THE BEST!
Here’s 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 45 TIMES the value of Hertz.
Icahn is betting that the ride-sharing business hasn’t killed Hertz. If he’s 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, he’s not
just taking a bet, he’s in control at Hertz.
21
Forbes Billionaire’s Portfolio
BUILDING YOUR OWN BILLIONAIRE’S PORTFOLIO
We’ve talked about the value of Buffett’s 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
I’ve 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 Icahn’s investment skill has created
investor alive. I’m sure most would $118 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 2019, Carl Icahn’s
net worth is incredibly, they he published, Icahn called attention to
$18 billion. remain at the top the power of the board seat. Looking
of their profession. back on a recent five-year period,
But Icahn has, unequivocally, shown Icahn showed that when he secured a
superior skill as an investor. board seat on a company in his
portfolio, he was able to create value
Remember: Icahn has returned 31% for shareholders to the tune of a 27%
annualized since 1968. That would gain, on average. That’s controlling your
turn every $1,000 invested with Icahn
into $1.2 billion today – an incredible “Icahn’s investment skill has
number. Buffett, on the other hand,
created $118 for every $1
returned 19.5% annualized during
created by Buffett.”
virtually the same time period.
22
Forbes Billionaire’s Portfolio
BUILDING YOUR OWN BILLIONAIRE’S 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 world’s greatest
investor.
garnered a 463% return in just 12
months, between 2012 and 2013.
24
Forbes Billionaire’s Portfolio
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.
25
Forbes Billionaire’s Portfolio
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
Join
FORBES BILLIONAIRE’S PORTFOLIO
Manage Your Portfolio
Like A Billionaire Investor