The world's two richest men appear to be eyeing a takeover of one of the world's most vital industries. Here's how to cash in... (Full Story Below) Also in Today's Issue... 1. Capture a Safe, 10.2% Yield with This Booming Oil & Gas Stock
2. How Paul Tracy Makes $3,296 in Dividends Each Month
3. Mike Turner's Trading Success Rate is 90% ... Here's His Latest Pick
4. 100% of Amy Calistri's Trades Are Winners -- Here's Her Next Pick
5. A High Yielding Bank with Chinese Growth
6. Collect 32 Dividend Checks a Month
7. 2010's Craziest Market Prediction... And Why It Could Come True
8. The Rarest Securities In the World Yield 11.5%, 11.4% and 9.1%
9. "Income Security of the Month" for March 2010 Buffett and Gates Pouring Billions into Trash
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 -- In 2009 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 or two individual stocks.
That's exactly what's happening right now. In fact, Buffett and Gates now appear to be eyeing a takeover of one of the world's most vital industries: trash. Bill Gates Makes The Biggest Insider Trade of 2009
Last year Bill Gates invested more than $450 million into Republic Services Inc. (NYSE: RSG) -- making it the largest insider trade of the year. (Gates may or may not want the public to know he's buying this stock, but he doesn't have a choice. The fact that he owns more than 10% of the company's outstanding shares automatically makes him an "insider." And company insiders are legally obligated to report their trades... as Bill Gates has.)
Meanwhile, Warren Buffett is just starting to load up on the same stock, purchasing a total of 8.3 million shares last year. And Gates also owns $500 million worth of this company's closest competitor, Waste Management Inc. (NYSE: WM).
All told, Buffett and Gates have invested more than $2.0 billion into these stocks, and recent filings show they could be accelerating their purchasing:
Gates bought Republic Services 23 different times in 2008, pouring an estimated $256 million into the stock. In 2009 he bought $452 million more of the stock, purchasing it on 39 separate occasions.
Meanwhile, Buffett first bought 3.6 million shares of Republic Services between June 30, 2009 and September 30, 2009... and then bought ANOTHER 4.7 million shares between September 30, 2009 and December 31, 2009.
What makes these companies so attractive?
*** They control an essential service every American uses every day.
*** Competition is virtually nonexistent -- these two stocks together control half of the U.S. market, giving them a virtual monopoly on this essential service.
*** These growing monopolies deliver big profits for investors. Period. Republic Services has consistently outperformed the S&P 500 and has skyrocketed +76.2% over the past year.
But don't think you've "missed the boat" on this stock already -- the most recent Berkshire Hathaway quarterly filing (on February 16, 2010) shows that Warren Buffett is just starting to buy Republic Services -- and if you act now, you can pick up shares today for around the same price Buffett paid!
Bottom line -- Buffett and Gates could be trying to corner the market in this vital industry. If you want to profit alongside them, then you must act soon. Both of these stocks are already getting pushed higher thanks to Buffett and Gates' enormous insider purchases. And 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 firm -- 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 can profit right alongside both Buffett and Gates as they pile into this booming market.
-- Paul Tracy
Co-Founder and Chief Investment Strategist |
