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The Billionaire Advantage



You may think billionaires have a natural advantage in the investment business. They do. They are offered deals never available to you and me.  But that’s not all.
Case-in-point. Consider Warren Buffett, one of the richest men in the world.  He is known for taking over companies by buying a controlling share of their stock.  He did it again this year.  He privately bought about 20 million shares of Krogers for about $25+/share.  This expense cost him about $450,000,000.  So what happened?  The shares, in the past three months have risen about 16% to $33/share, implying his investment has already accrued at least $70,000,000.  In addition, he gains $40,000,000 in dividends.   That is a considerable increase (more than 20%) on his original investment - in just a few months.  But why did the stock go up so much?  Because he announced that he bought the stock. That meant thousands of others piled on hoping to cash in on whatever Buffett was thinking, driving the share price higher. So, Buffett’s intuition and analysis about the company noted an investment opportunity, and other knowing his reputation others jumped in not knowing why but hoping to piggyback for profit – and big profit for him.
This is what a billionaire, not multi-millionaires, can do.  Certainly not you and me. The billionaire, with only half a brain, can change the stock market in personal favor.  Warren Buffett has a full brain and can do this everyday. And does!

This is an important lesson about really big money.  The sad thing about billionaires these days is they are no long satisfied with much more wealth, or buying an island, or a stable of horses, or a castle in England, they want to buy countries.  Consider Mike Bloomberg,  worth only $60 billion.  He wants to buy the United States, and even though he is no longer in the Presidential race, he still buys and controls Congressional candidates everywhere.
Ok, you want to tax this wealth and these profits to the max?  Then billionaires elsewhere will do the same thing with far less taxes owed.  And our very own billionaires will move off shore.

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