Buffett’s Bowing Out – Here’s How to Profit From Big Money With the Billionaires Club
BY MIKE BURNICK, SENIOR ANALYST, TRADESMITH Last week, a legendary investor – perhaps the greatest of all time – decided to hang it up. For me, a lifelong baseball fan, it’s the equivalent of Willie Mays, Ted Williams, and Joe DiMaggio all retiring at the same time. Warren Buffett announced he’ll step down as CEO of Berkshire Hathaway at the end of the year. The company he built from a lowly textile manufacturer became what may be the greatest investment vehicle of all time. Buffett’s Berkshire investment track record has seen some ups and downs over the decades, but his performance is nothing short of legendary. Berkshire’s portfolio returned 5.5 million percent on every dollar invested 60 years ago. That works out to an annualized gain of nearly 20%… almost double the 10.4% annualized return of the S&P 500 Index over that same period. Truly impressive. And while Buffett will certainly be missed, his investment wisdom – and the lessons he shared over decades – will live on. For me, perhaps the greatest lesson of all is: “Be greedy when others are fearful and fearful when others are greedy.” Much of Buffett’s success centered around keeping the process of investing simple. His timeless advice: Buy wonderful companies at attractive prices. He stressed, time after time, the importance of keeping your emotions out of the investment process. And at his 60th Berkshire Hathaway annual shareholder meeting this past Saturday, Buffett repeated some of the same sage advice: “People have emotions,” Buffett said, “but you’ve got to check them at the door when you invest. It’s not that I don’t have emotions,” he continued, “but I don’t have emotions about the prices of stocks.” The truth is, we’re only human – and emotional hang-ups often lead us astray when it comes to making investment decisions. The challenge is to keep those emotional biases in mind, especially when markets get stressful, like they are right now. Another Buffett hallmark: patience. He once said: "Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years." You don’t have to make a killing in the stock market overnight. Instead, patience and taking the long-term view allow you to compound your wealth over time. Buffett’s stated holding period for stocks is “forever,” and that’s held true for some of his biggest winners – like Coca-Cola and American Express. Fortunately, TradeSmith is dedicated to helping you take the emotions out of investing. We’ve built an array of tools and indicators based on hard data – not emotional whims. These tools can help you find the right investments at the optimal time, while also protecting your portfolio and carefully managing risk. One of those tools is our exclusive Billionaires Club, which prominently features Buffett, alongside dozens of other highly successful billionaire investors. I always keep a watchful eye on what the billionaires are up to. Because they didn’t get that way by accident. Like Buffett, they’ve all spent years developing and refining winning stock-picking strategies and built impressive track records. So, with so much market turmoil, what are the big-money billionaires up to these days? Let’s find out. Buffett, for one, thinks the stock market is too expensive for his liking – even despite the recent sell-off. According to 13F filings with the Securities and Exchange Commission, Berkshire Hathaway has been a net seller of stocks for 10 straight quarters now. And as of March 31, Buffett is sitting on a massive $347 billion in cash. Still, Warren & Co. are finding some attractive opportunities in this market. For example, Berkshire has been steadily adding to its position in energy giant Occidental Petroleum (OXY). Buffett’s portfolio has invested nearly $11 billion in this once-out-of-favor oil and gas firm, now one of Berkshire’s largest holdings. Mind you, I’m not saying you should rush out to load up on OXY shares just because Berkshire Hathaway is doing so. But make no mistake – Buffett and his team do their homework to find attractive stocks at the right time. So, it’s worth keeping track of where they are investing their own money. And there’s an easy way to stay up to date on the latest moves of some of the world’s smartest investors: The TradeSmith Billionaires Club portfolio tracker. How to Keep Tabs on the Billionaires Club At TradeSmith, we closely track about 30 “smart money” investors, including Buffett. These legends have made plenty of money – not just for themselves, but also for the savvy investors who were smart enough to invest alongside them over the years. We track their publicly available 13F filings, and we’ve recreated their portfolios, making it easy to follow their moves each quarter using the Billionaires Club.* 
The easiest way to access the Billionaires Club is from the Dashboard from the main menu, shown above. Simply click on My Services, then select Billionaires Club in the submenu located just below. Once there, you can look up your favorite billionaires by name from the drop-down Subscriptions window. You’ll be able to scan their open and closed positions to see which stocks they’re buying and selling. These wizards of Wall Street have already done the heavy lifting for us. By using the Billionaires Club to follow in their footsteps, so to speak, we’re investing with the smart money – and we’ve got the stats to prove it. *Please Note: This feature is available to TradeStops Pro, TradeStops Elite, Ideas by TradeSmith Elite, Trade360,TradeSmith Essentials, and Platinum customers. If you don’t see this in your TradeSmith Finance dashboard – and would like to – please call our dedicated Customer Care team at 866-220-1107 to find out how to get access. Backtesting the Billionaires When we developed the TradeSmith Billionaires Club, we asked ourselves a simple question: How can we make it even better – and potentially more profitable? To answer that, we performed extensive backtesting. We filtered stocks owned by these successful billionaires through our proprietary tools to find the best of the best. And the results were outstanding. By ranking stocks based on recent entry signals, average Volatility Quotient, and the number of different Billionaires Club members holding the same stocks, we found our strategy outperformed the S&P 500 by more than five times over. 
The result is our Best of the Billionaires strategy – exclusively available to Ideas Elite, Trade360 Elite, TradeSmith Essentials, and TradeSmith Platinum members. Better yet, you can also use our popular TradeSmith Screener tool to find stocks that Billionaires Club members are actively investing in right now. Instead of analyzing each billionaire’s holdings one by one, the screener lets you scan the portfolios of all the big-shot investors in our Billionaires Club at the same time. Here’s how to set up a simple Billionaires screener: - Log in to your TradeSmith Finance account.
- Navigate to the Invest tab and select the Screener option.
- Next, click on +Add Filters and select TradeSmith Strategies.
- Finally, check the box under Ideas Lab for Best of the Billionaires.
Running this screen will give you a list of all stocks currently owned by our Billionaires Club – 410 in total, as of last week. To narrow down the list, you can always add additional filters of your choosing. For example, try adding additional TradeSmith filters like Health, Business Quality Score, or Free Cash Flow Yield. Warren Buffett, after all, has always favored high-quality stocks that generate lots of cash. Or consider including a few fundamental filters such as P/E Ratio or Dividend Yield to further narrow your results. The sky’s the limit! Mike Burnick’s Bottom Line: It pays to follow the “smart money” – and it’s a great source of new potential investment ideas. Our TradeSmith Billionaires Club can help you do just that. You can keep a close eye on the stocks favored by successful investors like Buffett and dozens of other Billionaires Club members we track. Good investing, 
Mike Burnick
Senior Analyst, TradeSmith P.S. While following the smart money – like Buffett and other billionaire investors – can provide a powerful long-term edge, there’s also something to be said for seizing shorter-term opportunities when market conditions align. And right now, that moment could be here. My colleague over at InvestorPlace, Luke Lango, has just uncovered a new opportunity in today’s volatile market environment. With the Federal Reserve holding rates steady amid rising concerns about tariffs and a weakening economy, volatility isn’t going away anytime soon. But according to Luke, this isn’t a reason to panic… It’s a reason to prepare. This exact type of market chaos has opened up what Luke calls a “30-day profit window” – a brief period where a select group of stocks can deliver years’ worth of gains in just a matter of weeks. In fact, he’s already used his powerful algorithm to help readers capture 115% on Aveanna Healthcare Holdings (AVAH) and 38% on AnaptysBio (ANAB). Luke just went on camera to explain why this next window has just opened – and to reveal the seven stocks he believes are best positioned to soar as fear returns to the markets. His breakthrough Auspex algorithm is specifically designed to identify short-term stock opportunities – uncovering explosive gains when the broader market is in chaos. But timing is everything. These windows don’t stay open for long. Click here now to watch Luke’s urgent briefing. | 
Post a Comment
0Comments