This latest pitch coming through from the Wealth Daily folks, for Jimmy Mengel’s The Crow’s Nest advisory, has caught the attention of plenty of Gumshoe readers — it starts with a long spiel about tapping into the “secret” holdings of billionaires by using a SEC disclosure rule that these rich folks are all fighting tooth and nail, but then settles in to tease us about a few specific investments that they think will boom (and that they found, presumably, in the pages of these SEC disclosures).
The SEC data they talk about in the ad, by the way, are the 13F filings — generally these are due 45 days after the quarter end from all institutional investors and fund managers, which is why we know quite a bit about the holdings of Warren Buffett or Carl Icahn and most of the other celebrity investors and hedge fund managers, similar to the quarterly disclosures by mutual fundsd. They don’t have to disclose positions that aren’t traded in the US, and they can occasionally get permission to keep one of their investments secret for a bit longer (as Buffett does from time to time when he’s in the midst of trying to build a large position at quarter-end and doesn’t want to boost the price up, I think he last did that when he was buying IBM shares for Berkshire but my memory might be faulty), but other than the fact that this data comes with a time lag that is quite substantial for some investors it is genuinely valuable information.
Of course, everyone who wants it can get it for free from the SEC’s Edgar database so it’s not that valuable. It’s definitely interesting to see the changes in portfolios as big investors shuffle their deck chairs and buy or sell, but the most prominent ones are also widely reported on CNBC and in the investing pundit universe in general and there are a large number of websites and newsletters that track 13F filings to try to turn up exciting info. Surprising new additions or sales of existing positions can certainly move stocks on the day that these 13F filings come out, but that’s definitely the exception (and, of course, the portfolio that’s being disclosed is about six weeks old when these are released — so they could be impacting stocks that the original superstar investor doesn’t even own any more).
And many of these folks have truly massive, diversified portfolios of dozens or hundreds of stocks under their management so there’s plenty of room for smaller stocks or smaller transactions or less-well-known investors to fly under the radar to some degree.
Which seems to be the point of this teaser pitch — though of course, it has to be a “secret” or it wouldn’t be any fun! Here’s a bit of the spiel just to give you a taste:
“Why America’s rich elite will do anything to keep this document out of your hands…
“The story behind this little-known document might make you angry, especially if you’re tired of Wall Street’s rigged game.
“The good news is this document could have a huge impact on your wealth this year.
“The government has been publishing it since 1975 at a non-descript Federal office located at 100 F Street in Washington, D.C., just three miles from the White House.
“Even though it has been publishing it for the past 38 years, 99% of Americans don’t know it exists. And it’s not hard to see why…
“America’s richest investors have done everything they can to keep it off-limits from regular folks like you and me.
“They won’t talk about it. They won’t even acknowledge it. Most of them won’t even tell their own family members this document exists.
“But even with all their attempts to keep this information underground, a small circle of ordinary investors like you and me has managed to access one of THE closest-held investing secrets in history — making their own fortunes in the process.”
And what’s up with the “secret metal” bit? Here’s how they put it in the ad:
“Elite Investor #1: “The Secret Metal that Could Add a Zero to Your Net Worth”
“As you know, from 2002 to 2011, gold went up 600%.
“If you missed that big bull market in gold, don’t worry…
“Now you have a second chance to catch a bull market in another metal. Only this bull market has the potential to be much bigger than the gold bull market.
“One of the wealthiest people in the financial world considers this to be one of the most incredible opportunities he has EVER seen.
“This super-investor turned some $15 million into roughly $460 million for his customers from 1998 to 2006. Now he’s massively investing in this metal.”
The Mighty, Mighty Thinkolator can tell you that this “super-investor” is Rick Rule, who used to run his own shop as a small investment banker and advisor in natural resources, with that incredible run into the mid-2000s, and merged his company with Sprott, the big Canadian asset manager, a few years ago.
And what’s that “secret metal” he’s apparently hot on now? Here’s a bit more:
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“I’m not talking about gold, silver, platinum, or palladium; this is an opportunity I doubt anyone reading this has ever considered before.
“It’s completely separate from the U.S. economy, which means no matter what happens to America over the next few years, you could still make five times your money on this single investment.
“In the 1970s, when this metal entered a bull market, it went up tenfold.
“And that was not the only time this metal made a lot of people rich.
“There was another bull market more recently, from 2000 to 2007…
“in the last bull market, this same super-investor was heavily investing in the producers of this metal. He says a lot of people who followed him back them ‘added a zero to their net worth as a consequence of that market.'”
So what’s the deal? What’s the secret metal that Rick Rule made millions from in the last bull market, and that he’s hot on again now?
Well-timed, since our longtime reader Myron Martin shared a piece on uranium just a week or so ago — but you probably knew that already, and we’ve seen a consistently rising level of chatter about uranium from many of the newsletter pitchers and free pundits we follow. It’s a nice story because it has lots of global