Icahn Enterprises
The Dynamic Wealth Report
February 29, 2008
Do The Best Work For You?
I have a guy. His name is John and he is an expert when it comes to
taxes. He is so good he’s discovered IRS employees attending his tax
seminars. His business is consulting with financial planners and
attorneys helping work through difficult tax situations.
I have another guy when it comes to major home projects. David is the
most knowledgeable guy I know when it comes to fixing and upgrading
homes, specifically multimillion dollar homes. You don’t call him to fix
a leak or a running toilet. I have other guys for those issues. You call
David when you want to add on a bedroom or remodel your kitchen (or
build a multimillion dollar home).
What makes these guys different than all of the others?
Experience. When you have a problem, or a question that needs answering,
you don’t just listen to any old “Joe on the street”. You don’t want
someone that’s just guessing. No, you want experience and knowledge. You
want the best, the guy who says “Yeah, I’ve seen this before” when no
one else has.
Nothing is more important.
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Your financial future is a close second, only to your health, when it
comes to needing “that guy”. If you had a medical problem you find the
best and brightest doctor to cure your illness. You should do the same
with your financial future.
With money your life isn’t at risk, but what you can do with your life
is.
Moves you make now in your portfolio will impact quality of life years
from now. It doesn’t seem like much now, but an extra percent of return
or sidestepping a big loss, makes a huge difference in retirement. It’s
the different between traveling the world . . . or watching the world
travel on TV.
To greatly improve your odds of investment success, sometimes it makes
sense to invest alongside people who know what they’re doing. There are
a number of well known investors who have proven themselves. They make
money in good and bad times. They have seen the ups and downs and have
the experience many others lack.
Would you invest with them?
If you could put your money with a “heavy hitter,” a real professional,
would you? If you could stand next to them and invest in their ideas,
would you? If you got the inside scoop on the very same investments
these billionaires are making, would you put your money in too?
Of course you would. In a heartbeat. You would grab onto that
opportunity with both hands. So here is the secret; you can. Let me show
you how. Carl Icahn, the billionaire financier, has made his fortune in
the stock market. It would be hard to argue that he doesn’t know how to
make money.
He recently bought a company renamed Icahn Enterprises. This company is
publicly traded under the ticker “IEP”. That means you can buy this
stock and participate in many of the deals that Carl is working on. The
company is a holding company. That means it owns parts of other
businesses. Like metal processing companies and even real estate
developments.
The real beauty.
The best part of IEP is the investment management business. When Carl
Icahn took control of IEP (he owns some 90%), he folded in his money
management business. This is where he manages more than $7.1 billion of
capital for various wealthy investors . . . and where Icahn has his own
money invested.
There is a famous saying on Wall Street, “past performance is no
guarantee of future results.” A catchy little phrase no doubt thought up
by some attorney. You never have a guarantee that an investment manager
will perform. In my mind, having an expert working for you (like Icahn),
someone with experience, certainly improves the odds.
• MasterCard (MA) received an upgrade and a $215 price target from
Credit Suisse. The upgrade came despite the company last month
announcing slower revenue growth.
• Friedman Billings wins the “better late than never” award after
downgrading Fannie Mae (FNM) this week. The company trades at just over
$25 per share, down from highs of over $70 just a few months ago.
• Lehman brothers went out on a limb today initiating coverage with
positive comments on the homebuilding sector. Companies include:
DR
Horton (DHI), KB Home (KBH), Lennar (LEN),
Pulte Homes (PHM), Ryland
Group (RYL), and Toll Brothers (TOLL).
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