You might presume that you don’t have advantages over Warren Buffett when it comes to investing. But I’ll let you in on a secret…
You do.
Buffett admitted as much himself in a BusinessWeek interview back in 1999. Here’s the money quote…
The highest rates of return I’ve ever achieved were in the 1950s. I killed the Dow. You ought to see the numbers. But I was investing peanuts then. It’s a huge structural advantage not to have a lot of money. I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that.
Recently, the guest who’s joining me for a special video event this Tuesday (you can automatically sign up here) shared with me how to take the best of Buffett – and other billionaire investors – and beat them at their own game.
So, in today’s Smart Money Weekly Roundup, I’m going to share this information with you. Let’s start with the Buffett baseline…
My guest analyzed Buffett’s track record as far back as he could get data for, which came to be August 2000. Now, this is not the stock performance of Berkshire Hathaway Inc. (BRK.A). Instead, this is the percentage gain of Buffett’s equity investments that are part of the Berkshire Hathaway portfolio of investments.
Since late 2000, every $1 invested in Buffett’s equity picks would be worth $5.69 today. That’s a healthy gain of 469%. That’s already a strong outperformance, given that the S&P 500 rose 268% in the same time frame.
However, my guest says…
But if you’d applied my proprietary tools to guide the very same stock positions, you’d have done even better. Much better, in fact – with 856% profits during the last 24 years:
Using my system, we were able to take the exact same portfolio of equities and squeeze out even more profit. That’s because my system is about taking your best investing ideas and making them work even better for you, because you’ve optimized your profit potential… while managing risk.
How’d we do it? Here are the rules for beating Buffett:
1. Start with Buffett’s equity investments from his Berkshire Hathaway portfolio.
2. Sell any investment if our proprietary indicator signals a sell.
3. If Buffett still owns an investment that turns from a sell to a buy, then buy it.
4. Rebalance the portfolio to minimize risk.
Not only does my system combined with Buffett make more money, but it does so while taking less risk. After all, billionaires like Warren Buffett are more willing to withstand volatility because their financial security isn’t really on the line. Buffett is a perfect example: He’ll probably keep living in that same house in Omaha where he’s lived for decades, all while amassing a net worth of $141 billion.
For those of us who don’t have quite that much of a financial cushion, tools can help us step back from stocks that fall below our risk point… then reenter when they’re healthy.
For example, Buffett’s Berkshire portfolio made a 36.8% profit by holding Restoration Hardware (RH) stock from late 2019 to mid-2023.
But our indicator would have had you out of RH in early 2020… reenter that summer… then exit at the beginning of 2022.
The result? Profits of 73.8% – double what the Berkshire portfolio saw from holding on through that whole roller-coaster ride.
It’s not because we are smarter or better connected than any of these legendary billionaire investors. The investing ideas behind our results are still theirs. It’s just that we’ve programmed our software to help investors make more and risk less on every trade… even than Buffett and friends.
My guest will share in greater detail how his system can work for you tomorrow, September 24, at 8 p.m. Eastern time. During that event, we’ll show you how to begin taking steps immediately to proactively manage your risk… even potentially sidestepping major crashes.
If you’ve been an InvestorPlace reader for some time, you know that across Eric’s 30-year career, he’s gained a reputation for making timely market predictions. In last Wednesday’s Smart Money, Eric offers a plan to revise the way you invest and explains why embracing the power of technology will leave you in a stronger financial position than you are today. Click here to learn more.
Last Wednesday’s rate cut means a few different things. On one hand, the jumbo cut – and expected further cuts later this year – should be positive for healthcare and tech firms, commodities, and a host of other investment vehicles. On the other, this move suggests that the Fed isn’t so confident about the jobs market. Luckily, thanks to Eric’s special guest at tomorrow’s event, we can show you something akin to a “Billionaire’s Investor Club” for investors to outperform in any kind of market. Learn more about joining here.
Chaos definitely seems to rule in the financial markets today. Since the global pandemic hit in 2020, stocks suffered two bear market declines of 20% or more just two years apart. And two years of big gains to new all-time highs. But brace yourselves – there may be no end in sight to this mayhem. To find out two of the biggest fear factors facing markets and the economy today, and how you can financially set yourself up for this frenzy, click here to continue reading.
While the stock market initially slid in response to the Federal Reserve’s first rate cut of the year, it’s now surging to an all-time high. And this behavior isn’t unusual. In fact, when a recession is avoided due to the Fed cutting rates, the S&P 500 tends to rally. In other words, history strongly suggests that stocks will soar over the next year. And in Sunday’s special guest issue, Luke Lango gives us more detail as to why. Click here to read more.
Looking Forward
Ever since 2020, we’ve seen chaos in the markets. And despite the relief of last week’s rate cuts, several headwinds – wars in the Middle East and Ukraine, the election, and more – are still swirling around the markets…
And they could drastically impact the share price of just about every stock in the coming months.
My special guest at tomorrow’s event, at 8 p.m. Eastern, is convinced this could happen due to a set of alerts he’s receiving. At the event, he will further share how he gets these alerts… and how you can, too.
