Bill Gates and Warren Buffett are more than just close friends
and bridge buddies. With a combined net worth of over $77
billion, they're arguably the two most powerful men in business.
So powerful, in fact, that they can move the stock market further
and faster than just about any individuals on the planet.
Case in point: Last year, shares of
Dalian Dayan Trands (SHA: 600233)
-- a small Chinese clothing stock -- skyrocketed +108.3% in a
single month after the press discovered that both Gates and Buffett
regularly wear the firm's suits.
If these two men can move the stock market by altering their dress
code, just imagine what they can do when they team up and start
pouring billions of dollars into one individual stock. And that's
exactly what's happening...
Gates already owned 29 million shares of
Republic Services (
going into 2008. Then, he bought the stock an additional 23
different times in 2008... and bought it another 39 times in 2009.
He now owns 55 million shares.
And Warren Buffett is
to load up on the same stock.
Berkshire-Hathaway (NYSE: BRK-A)
first bought 3.6 million shares of Republic Services between
June 30, 2009 and September 30, 2009... then bought another
4.7 million shares between September 30, 2009 and December 31,
2009... and then bought ANOTHER 2.5 million shares between January
1, 2010 and March 31, 2010. Berkshire now owns 10.8 million shares.
All told, at today's prices, Buffett and Gates now have just
$1.9 billion in this stock.
What's interesting is that Gates also owns $540 million worth of
this Republic Service's closest competitor,
Waste Management Inc. (
So what makes these companies so attractive?
They control an essential service every American uses
Competition is virtually nonexistent -- these two
stocks together control
of the U.S. market, giving them a virtual monopoly on this
These growing monopolies deliver big profits for
investors. Period. Republic Services has consistently
outperformed the S&P 500 and
has jumped about +40% over the past year.
-- Buffett and Gates could be trying to corner the market in this
vital industry. If you want to profit alongside them, then
you may want to act soon. If history is any guide, then Buffett
might eventually buy one (or both) of these companies
outright. The last time he did that, the shares of his target
Burlington Northern (
-- jumped +29% on the day of the announcement.
Investors who were smart enough to buy the stock a few months
earlier, when word first surfaced that Buffett bought $271 million
of the stock, were treated to gains of +60.6% in less than a year.
History could be repeating itself here, and you may be able to
profit right alongside both Buffett and Gates as they pile into
this booming stock.
Disclosure: Paul Tracy does not own shares of any security
mentioned in this article.
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