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THE LITTLE BLACK BOOK OF BILLIONAIRE SECRETS

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FOLLOW <strong>THE</strong> BEST!<br />

Here’s what I mean …<br />

Hertz sells for $17 a share. Billionaire<br />

activist investor Barry Rosenstein<br />

of Jana Partners has publicly said he<br />

thinks Hertz is worth $60. Jana owns<br />

almost $1 billion worth of HTZ stock.<br />

And he has company. The legendary<br />

billionaire investor Carl Icahn owns<br />

9% of the company. Stocks reprice on<br />

catalysts. And these two influential<br />

investors are the catalyst.<br />

“Great investors<br />

LOVE asymmetric<br />

risk”<br />

Now, the downside of the stock is that<br />

it could, maybe, lose half of its value<br />

here. A lot would have to go wrong<br />

with the world and the company. But even if the stock went to zero you can only<br />

lose 100%. I should say, this rarely happens when billionaire investors are so heavily<br />

invested in a stock.<br />

So if the world falls apart you only lose 100%. If things go right you have prospects<br />

of nearly 300%. That’s a 3 to 1 risk reward trade. And trust me, there aren’t a lot of<br />

investments that offer that scenario. That is why the best investors like stocks that<br />

have this ASYMMETRICAL RISK TO REWARD opportunity.<br />

21<br />

Forbes Billionaire’s Portfolio

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