Cloning Superinvestors Trade-by-Trade
It’s been a bumpy ride for investors over the last five years, with low interest rates clashing with a booming economy and a populist political surge. Stock pickers are playing the markets on hard mode, and those topping the scoreboard are stealing all the attention!
Superinvestors like Warren Buffett, Carl Icahn, Peter Lynch, and George Soros have been following markets in the right direction for years. Surely, it’s a no-brainer to watch what those shrewd guys are doing. Perhaps, it’s an even better idea to clone their investments? Well, there’s a fund for everything these days, and now over a hundred million dollars is invested in ready-made, passive baskets of stocks that track the gurus trade-by-trade. Their gains and your gains.
Just this quarter, regulatory 13F forms and other clerical scrub revealed Superinvestors were buying Bristol-Myers Squibb, Disney, and Fox. Before the dollar signs light up your eyes, though, wait a minute. There’s always a catch!
Most of these investors are past their heyday, having made their money back when no one knew their names and there was definitely no fund tracking them. Investors should bookmark surges in billionaire activity, but copy-catting the old dogs has its downsides. The world changes very fast, and chances are, the next big Superinvestor is secretly out there right now. Heck, he or she may be reading this very article!