Warren Buffett has a grudge with you.
You read that right. The man with $130 billion in net worth doesn’t just have a bone to pick with individual investors like us. He’s also jealous that you and I can do something he’ll never be able to do.
Truth is, he’s been a little peeved for years.
You see, the Oracle from Omaha — arguably the greatest investor in history — has a bit of a problem.
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He’s too rich.
I know, I know… that sounds like a good problem to have, right?
However, one of his more famous remarks gives us a little insight into his grievance.
Back in 1999, Buffett gave an interview in Business Week where he said (emphasis my own):
“If I was running $1 million today, or $10 million for that matter, I’d be fully invested. Anyone who says that size does not hurt investment performance is selling. 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 50% a year on $1 million. No, I know I could. I guarantee that.”
There’s a good reason why he thinks like this.
Unlike you or I, who trade with a trivial amount of money compared to Buffett, his hands are tied by regulatory issues. When you’re investing with billions of dollars, you can’t simply target the kind of small cap stocks with the best growth potential.
If he went after those small players, shares would move far too much because they’re too illiquid. Imagine what would happen if you pumped several billion dollars into a company that was trading with a cap of just a few million… you see what I mean?
Because of his limitations, Buffett will look at the other side of the fence in envy and see us trading with far higher returns.
Don’t believe me?
Well, let me show you exactly how we beat Buffett recently…
Beating Buffett Has Never Been Easier
Everyone knows that Warren Buffett loves energy.
In 2022 and 2023, he showed just how hungry he was for oil stocks after accumulating shares of Occidental Petroleum.
It made sense for him to choose Occidental. He was quite familiar with the company — the first company he ever bought was an oil stock that was eventually acquired by Occidental in 1983 — and it hit all the right spots. Occidental trades with a market cap of over $51 billion as I write this, and certainly falls into the large cap territory in which Buffett hunts.
Last July, however, we talked about how this was a mistake for normal investors like us.
Simply put, there were better opportunities.
In fact, I told you about two far better oil stocks with a much stronger upside than whales like Occidental — one of which was Diamondback Energy, a personal favorite among the members of our investment community.
Now, had you followed Uncle Warren’s path and mixed it up with a stock trading with nearly a million outstanding shares, your position would actually be slightly down right now.
If you’ve held onto Diamondback Energy, however, you’d be up more than 30% — and that’s just the beginning. Not only has Diamondback experienced steady growth since last summer, but the company just announced a major $26 billion deal to buy Endeavor Energy.
So much for staying small… If this deal goes through, Diamondback will be trading with a value akin to Occidental.
Now think of the implications of this new acquisition.
If completed, it would mean that just a small handful of oil companies would control most of the daily output in the Permian Basin. Right now, there’s more than six million barrels of oil pumping out of Permian wells — making the oil region one of the largest on the planet.
Finding those hidden gems in the Permian just got THAT much tougher.
Thing is, they’re still a few out there.
You just need to know where to look. I strongly recommend you take just a few moments out of your day and check this one out for yourself.
Until next time, Keith Kohl A true insider in the technology and energy
markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new
technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the
Managing Editor of Energy & Capital, as well as the
investment director of Angel Publishing’s
Energy Investor and Technology and
Opportunity. For nearly two decades, Keith has been providing in-depth coverage of the hottest
investment trends before
they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution
currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on
key advancements in robotics and AI technology. Keith’s keen trading acumen and investment research also extend all the way into
the complex biotech sector,
where he and his readers take advantage of the newest and most groundbreaking medical therapies being
developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s
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