In 1986, Ivan Boesky was on top of the world. From humble beginnings, he had amassed a $200 million fortune and graced the December cover of Time magazine.
Boesky made this fortune through stock trading. And since launching his firm a decade prior with only $700,000 in seed capital, he used a special strategy to earn consistent, safe gains.
The plan was simple: Boesky would find companies likely to be purchased… take a large position… then cash out the gains if a buyout materialized.
As his fame and fortune grew, Boesky began straying from solid research and analysis. Instead, he turned to inside information from the folks working on buyout deals. Then, he would take large, brazen positions – sometimes days before a buyout closed.
This method was lucrative, no doubt. But it was also a clear violation of insider trading laws. Boesky was arrested and sentenced to 3½ years in prison… and charged a massive $100 million fine.
The sad thing is, had Boesky stuck to his original strategy, he could’ve milked the stock market for gains to this day. But he fell victim to a trader’s worst enemy: Greed.
Fortunately, we have access to the strategy Boesky used before he started cutting corners. And we don’t need to rely on insider information to find the most promising buyout setups. All we need to do is stick to our research to find consistent gains.
This trading strategy allows us to take stakes in strong companies after a buyout is announced. Then, we simply hold our shares until the check clears.
I’ll tell you more about this strategy in a moment, but know this: We’ve used this method to bank safe annualized gains like 11.5% on Cypress Semiconductors, 27% on Celgene, and even a large, annualized score of 258% in the face of Brexit uncertainty (more on that last one below).
And herein lies our secret sauce at PBRG…
First, we find safe, conservative ideas that generate multiple streams of income. Then we put a portion of that safe income into what we call “positive asymmetric risk” investing…
That means you can take a grubstake from your income-generating strategies – say $100 – and potentially stand to make $100,000 or more by investing it in cryptos or pre-IPOs.
That’s how you make life-changing gains without putting your current lifestyle at risk.
A Low-Risk/High-Reward Setup
As a shareholder, there’s nothing better than a good, old-fashioned bidding war over a stock you own.
Think about it… As bidders one-up each other, shares of the company you own rise higher. You can just sit back and reap the benefits without lifting a finger.
For decades, Wall Street has used buyout announcements to rake in billions in profits. That’s one of its favorite low-risk/high-reward setups.
It’s also one of the hedge-fund-type strategies Daily editor Teeka Tiwari and I use to generate thick streams of income. We call them “Skim Trades.”
With these trades, we analyze major buyout deals as they’re announced. And when we find a deal we like… we buy the targeted company’s stock. Then we sit back and capture the difference between the market price and the buyout price.
Let me give you an example of how powerful this strategy can be…
In March 2020, we recommended multinational insurance broker Willis Towers as a play on the Brexit saga and its corresponding rise in volatility.
We foresaw that uncertainty around Brexit would cause well-run, elite British firms to trade at bargain valuations. But these firms do most of their business outside the U.K., so they’d be able to continue functioning as usual once the dust settled.
But there was one thing we couldn’t predict…
The coronavirus-induced massive sell-off in global stocks made companies with even solid buyout offers drop in price. And this handed us the opportunity to strike on Willis Towers.
Thanks to the combined volatility of Brexit and the coronavirus, shares fell as low as $148. That’s despite insurance brokerage giant Aon making a binding buyout offer of $232 per share.
We entered our position at $164 per share. And we exited at $197. That banked us $33 per share in less than a month. Annualized, that’s a 258% return.
For a low-risk trade, that’s a fantastic return. But the next step in this strategy is where your wealth can really take off…
The One-Two Punch to Riches
One way to gain exposure to the kind of merger deals we target is through the IQ Merger Arbitrage ETF (MNA). This exchange-traded fund (ETF) uses a systematic approach to invest in buyout deals.
It also has the longest track record and one of the largest asset bases of any merger-related ETF in the marketplace.
MNA also comes with a juicy 2.3% yield. So you won’t have to cut corners like Ivan Boesky did to get in on merger deals.
Now, of course, we all want to swing for the fences every now and then. And our Skim Trade strategy puts us in the position to do just that.
Remember, with positive asymmetric risk, you put up $100 for the chance to make $100,000 or more.
And Big T has found what he believes could be the best investment over the next 10 years.
This sector of the market is so huge, Teeka says you could potentially see a chance to turn a small $1,000 investment into $1.6 million or more.
But once the market catches wind of this investment’s potential, the opportunity for making market-beating returns will be long gone.
So if you want to supercharge your income today, click here to watch Big T’s presentation on what he calls “the No.1 investment of the decade.” You won’t want to miss it.
Analyst, Palm Beach Daily