When a billionaire makes a move, we’re well-inclined to pay attention.
I don’t just mean that philosophically, either.
The recent launch of the new iBillionaire Index (BILLION) officially rubberstamps the belief that billionaires own a substantial edge over everyday investors.
[ad#Google Adsense 336×280-IA]The Index tracks the holdings of over 20 billionaires – including Warren Buffett, George Soros, Carl Icahn, John Paulson, Jorge Lemann, David Tepper, Leon Cooperman, Steve Mandel, Chase Coleman, Daniel Loeb, David Einhorn and Seth Klarman.
These billionaires enjoy an edge over Wall Street, too.
Last year, the iBillionaire Index gained 43%, trumping the S&P 500’s 32%.
Since 2006, however, the spread gets even wider…
Now, tracking the companies that comprise the Index is where the story really gets juicy.
The favorite stock among billionaires is Apple (AAPL).
No surprise there, right?
Well, before you rush to buy shares, it’s worth noting that the average price billionaires have paid for Apple is $430. The average price at which these billionaires have sold Apple shares is $600.
So with Apple trading at $593, closer to where the billionaires have been sellers, is it really a company you should be buying right now?
Remember, your entry and exit points are infinitely important to your ROI.
Other favorites among billionaires include American Express (AXP), Priceline (PCLN), General Motors (GM), Micron Technology (MU), Google (GOOGL), Yahoo! (YHOO) and Netflix (NFLX).
I’ll be tracking the iBillionaire Index very closely, and promise to report any significant changes to its composition.
The second the billionaires start piling into a stock or dumping shares of another, you’ll be the first to know.
Onward and Upward,
Source: Wall Street Daily