How To Find Great Stock Trades By Golfing 18 Holes!
I found myself standing at the tee box. A golf club in one hand and a golf ball in the other. I looked down the long green fairway stretching out in front of me.
I’d already lost three golf balls that day. And soon it would be number four. I just couldn’t seem to find my game… heck, I couldn’t find anybody’s game that day.
I was hacking up the course something awful.
But my buddy, Joe, was on fire. He couldn’t go wrong. Shot after shot went straight down the fairway. His driver was pure. His irons provided just the right amount of loft. And his putting… let’s just say the ball was drawn to the hole like iron to a magnet.
I couldn’t get over how good he was playing.
I had to ask him… “What’s your secret?”
His answer surprised me…
He practiced a lot… of course. But the key to his game was studying other players. I don’t mean he flipped on the TV and watched a few rounds every weekend. No. He studied the pros like a general plans an invasion.
Every detail is monitored and carefully considered.
He watches everything from stance to grip to backswing. He looks at how they address the ball… even when they take a breath. He mentally mimics their every move. And it makes him a better player.
Here’s the kicker…
Piggybacking the pros isn’t just for improving your golf game. It’s also a great strategy for improving your investment returns.
Piggybacking The Pros
In the financial world, there are some investors who just “get” the markets. They intuitively understand when and where and why to invest… and their track record is amazing. How they do it over and over again can be a mystery. But their success speaks for itself.
Just look at professional investors like Warren Buffett, Carl Icahn, or John Paulson.
Year after year… decade after decade… investment after investment, they’re constantly finding ways to make money. When these guys make a move, I pay attention… and you should too.
I know what you’re thinking… How can you possibly know what Buffet, Icahn, or Paulson is buying?
It’s easy, thanks to a seventy-seven year old government regulation, we’re able to spy on these incredibly successful investors. According to the law, they must disclose the names of the companies they’re buying. We can see exactly what they’re thinking… and more importantly, what they’re buying for their own accounts!
You can imagine the profit potential in this information!
It’s like becoming a silent partner with the greatest investors of all time!
What Are These Pros Buying Now?
John Paulson, the billionaire hedge fund manager, is going against the grain and buying bank stocks. He recently increased his ownership in Bank of America (BAC) and Wells Fargo (WFC). Plus he’s added a number of new companies like Goldman Sachs (GS) and PMI Group (PMI).
But the shocker is his new position in Popular (BPOP).
BPOP is a regional bank with great exposure to the US, Puerto Rico, the Caribbean, and Latin America. With the stock trading at a mere $2.62 per share, it’s the most interesting of the bunch.
Warren Buffet is also making moves…
Instead of banks, he’s buying more of his favorite consumer drug company Johnson & Johnson (JNJ). What’s interesting about Buffet isn’t what he’s buying… but what he’s selling. While loading up on JNJ, he’s selling shares of Kraft (KFT) and Procter & Gamble (PG). Makes me wonder what he’s seeing that nobody else does?
And last but not least, we have Carl Icahn.
This billionaire financier just invested a big slug of capital (over a billion dollars) into the energy industry! He picked up shares of Chesapeake (CHK), NRG Energy (NRG), and Anadarko (APC). He’s clearly focusing on picking up bargains in the wake of the BP oil disaster.
So, how can you use this information?
First you can match trade for trade with these billionaires. You can buy what they buy and sell what they sell. It’s not a bad method. Another way you can use this information is by focusing on a particular industry. Clearly the big guns have banking and energy in their sights… probably for a reason.
Study those industries in detail… you never know what great investment opportunity you might uncover!
Category: Stocks
