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Showing posts with the label Krogers

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 pri