Large, successful investors have the same goals as smaller ones: raking in big profits.
But these "rich guys" often have more at stake when they make their trades: enormous investments.
For professional investors, there's more still: reputations, public scrutiny of their performance, and often their job...
It makes sense that they are going to go after big money...and do it smartly.
We can follow their lead and rack up the same huge returns...
But the key is knowing the right "rich guys" to follow.
After years of working as a Goldman Sachs trader, I've picked up the ability to spot them. Here's the best way you can, too...
Their "Skin in the Game" Can Pay Off for YouLess than two months ago in my Permanent Wealth Investor service, I recommended a high-yield real estate investment trust, or REIT, that has since shot up over 35% since that original recommendation (including dividends).
Now, did I know that this investment was ready to pop when I bought it? While I'd like to admit to some type of special insight into a move like this, the truth is no such inside info existed.
You see, when I recommended this REIT, I did so armed only with years of experience, and an understanding of the importance of both strong fundamentals and outstanding management at the helm of a company.
The fundamentals caught my attention for the REIT because unlike most companies in its industry group, this firm has consistently raised its cash dividend payout every payment.
While most of the other REITs were cutting their dividend, this standout company was bucking the trend and sticking out like a bullish sore thumb - and doing it for some time.
I also liked the stock because this highly complex company was undervalued and not understood by investors.
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Yet here's the thing -- aside from the positive fundamental and financial metrics, I liked this REIT because the company's founder and CEO also is a Goldman Sachs alumnus, a former colleague I've admired for a long time.
He had built a well-deserved reputation within Goldman as being a brilliant, "best in the business" money maker.
That isn't an easy reputation to get.
Goldman has plenty of smart and hungry multi-millionaires at the top of their game-a game that is all about making serious money.
Perhaps more importantly, a big chunk of this CEO's personal net worth was tied up in this company's stock, and that was the big trigger for me to recommend the shares.
That gives this CEO a lot of "skin in the game," meaning that if he makes the right business decisions, not only will the shares do well -- so will he.
If you invest in smart people who have a stake in their company's success, then you are automatically aligning your interest with theirs. So if they succeed, so do you.
The Best "Rich Guys" to Follow to ProfitsThat's why one of my basic rules is to invest with the smartest rich guys I can find.
The REIT investment I recommended is a great example of the rich guy rule. In fact, despite the fact that this REIT's total return has surged so much over the past couple of months, there's still plenty of money to be made here.
Of course, there's more than just one income-generating investment that allows you to employ the smart guy rule. Other publicly traded examples of investing with the rich guys are firms such as Kinder Morgan Energy Partners LP (NYSE: KMP) and Blackstone Group L.P. (NYSE: BX).
Both of these high-yield, stalwart growth-and-income plays are run by self-made, multi-billionaires who still have the bulk of their personal fortunes riding on the success of their respective companies.
Ironically, both men also used to work for companies that had been very successful, then virtually self-destructed after their departures.
In the case of Richard Kinder of KMP, he was a former president of the ill-fated energy firm Enron. Kinder built the company from the ground up, and then left to start KMP well before Enron's scandalous downfall.
Before founding Blackstone, founder and CEO Stephen Schwarzman led now-defunct Lehman Brothers' investment banking unit in the 1980s.
Both of these smart guys were savvy enough to seek out new opportunities when they saw them. And both have the experience, expertise and "skin in the game" to make Kinder Morgan and Blackstone even more successful.
And in the process make huge returns for you.
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