Here at StreetAuthority.com, we like to keep tabs on where the
richest people in the world are putting their money.
After all, billionaires like Warren Buffett and Bill Gates are some
of the smartest investors on the planet. And they have advantages
the rest of us don't: entire staffs of MBAs working for them...
Wall Street CEOs who give them sweetheart deals in order to get
theirbusiness ... and friends at the highest levels of government
and society who can steer them toward the next big thing.
These advantages have helped corporate titans like Buffett and
Gates deliver some of the biggest gains in stockmarket history.
For example, anyone with the good judgment to invest $10,000 in
Buffett'spartnership at its inception in 1956 (and to transfer into
Berkshire Hathaway (NYSE: BRK-B)
at thepartnership 's termination) would today be sitting on an
astonishing $432 million -- after all fees and expenses.
So when a prominent billionaire like Bill Gates starts buying a
stock hand over fist, you need to stand up and pay attention. In
this case, Bill Gates just purchased 7.5 millionshares of one of
the world's most popular agriculture-related stocks. The total
value of this investment was $571 million, ranking it as Gates'
biggest purchase in recent memory.
I'll give you the name and ticker symbol of this stock in a moment.
But first, you need to understand the broader implications of
what's going on right now. You see... Bill Gates' latest investment
is just a tiny part of a much bigger story. It's just one example
of what we believe could be the single most important trend in the
What's going on?
Simple -- in an effort to lock in big gains AND protect their
wealth from today's unprecedented stockmarket volatility, the
world's richest billionaires, politicians and corporate titans are
loading up on a select group of stocks that have proven to be some
of the safest and most reliable money-makers on the planet. Warren
Buffett, Bill Gates, Carlos Slim... maybe even your own Congressman
already own many of these stocks.
Around our research office in Austin, TX, wecall them
. We've talked about them so much over the past few months, the
nickname is just easier. Everyone here knows exactly what we're
Put simply, this is the set of stocks you can buy today and hold
for the rest of your life. When you own them, you no longer need to
worry about things likeinflation ordeflation ...bear markets
orrecessions ... "flash-crashes" or risinginterest rates . And
right now, the world's richest billionaires are loading up on some
of our favorite "Forever" names.
Case-in-point: Warren Buffett first purchased 216,000shares of one
of our favorite "Forever" stocks --
-- earlier this year. And according to his latest SEC filings, he
bought another 189,000shares of this same stock just months ago --
nearly doubling down on his initial position.
By our estimates, Buffett is already up roughly 31% since he first
bought theshares … and 16% on his latest purchase. Meanwhile, the
S&P 500 is down about 10% so far this year.
None of this surprises us.
We've been pounding the table on "Forever" stocks like MasterCard
for months now. In short, they're the only set of stocks we know of
that you can buy today and hold for the rest of your life.
My advice: Buy them, forget about them, and hold them forever.
Another of our favorite "Forever" stocks has plowed through
eightbear markets and has returned nearly 170,000% since 1972.
Every $725 you invested back then would be worth more than $1
million right now.
Today, the company is raising itsdividend , spending billions to
buy back its ownshares , making smart acquisitions and, according
to investment research firm Morningstar, owns an "80% stranglehold
on a $30 billionmarket ."
What few people realize is that many of the world's richest, most
successful investors, politicians and businessmen have been quietly
cashing in on "Forever" stocks like this one for decades... and
they're piling billions of dollars into them today as well.
My staff and I put everything you need to know about these
"Forever" stocks in our latest presentation entitled "
The 10 Best Stocks to Hold Forever.
" It's the single most popular piece of research we've published in
our company's 10-year history, and it's already been viewed by more
than a quarter-million investors. If you haven't already watched
it, I encourage you to do so right now.
In the meantime, let's get back to Bill Gates.
Although his latest $571 million investment was huge, the stock he
purchased didn't make the cut for our "
10 Best Stocks to Hold Forever.
" But as you'll soon discover, you still may want to consider
buying it for your portfolio.
Here's what's going on...
Recently, Bill Gates made a series of purchases of
Deere & Co. (
. Deere is the world's largest farm equipment manufacturer, a
leader in the production of equipment and machinery for the
construction and forestry industries, and a top producer of lawn
and garden tractors for homeowners.
With gains of nearly 2,000% during the past 30 years, and with a
stablebusiness model that focuses on farming equipment that the
in order to feed the global population, Deere could easily qualify
as a "Forever" stock.
According to SEC filings, Gates purchased roughly 7 and half
millionshares of Deere & Co, worth about $571 million. The
purchases, made during the past couple months, increased his total
position in the company to nearly $2 billion. That gives him a 6%
ownership stake in Deere & Co.
After examining the stock's fundamentals, it's easy to see why
Gates would want to load up on theshares : it's a good value, it
has a firmbalance sheet and the company has enoughliquid assets to
pay off its near-term obligations twice over. In addition, Deere
& Co. has raised itsdividend an average of 16% a year for the
past five years. At recent prices, it now yields about 2.5%.
On top of all this, thanks to its high-quality products and strong
customer service, Deere & Co. typically dominates themarkets in
which it competes. And to further extend itsmarket leadership, the
company has aggressively expanded itsbusiness overseas. In fact,
Deere & Co. now derives 42% of its total sales (currently $29.1
billion annually) from Europe, Mexico and other foreign sources.
That's up from just 28% in 2005.
And because the company is more geographically diversified than its
competitors, it tends to enjoy greater profitability whenbusiness
is good and take smaller hits to thebottom line during industry
But there are some risks to consider...
Deere & Co. has exposure to the ailing U.S. housingmarket
through its construction equipmentbusiness . As such, its sales
could suffer if the housingmarket continues to worsen. Also,
further expansion into foreignmarkets could be difficult.
Action to Take -->
You may want to follow Bill Gates on this one. Because of its size,
financial strength and geographic diversity, Deere & Co. could
continue to deliver market-beating gains in the years ahead.
Deere & Co. is a solid investment, but our research staff has
identified 10 other companies with strongerbusiness models ,
higherdividend yields and (arguably) much greater long-term growth
potential. This list includes the company I mentioned earlier --
the one Warren Buffett just "doubled down" on by purchasing $50
million worth ofshares . Another is a big favorite among our
nation's top political leaders -- in total, more than 50 members of
Congress own a stake. We put everything you need to know about
these stocks, as well as eight other companies just like them, into
a special presentation entitled "
The 10 Best Stocks to Hold Forever
." To learn more about this exclusive list of long-term winners,
visit this link
-- Paul Tracy
Disclosure: Paul Tracy and/or StreetAuthority, LLC hold a
position in MA, BRK-B.
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