In early July 2010, Warren Buffett made a controversial telephone call to the White House.The world's most prolific investor needed a favor.
At the time, Obama's Press Secretary, Robert Gibbs, said, "He wanted to come in and see the president, and you don't turn down the opportunity to talk to Warren Buffett."
And it's true...
Even the president of the United States doesn't say "no" to the second-richest American — especially when there's a deal to be cut.
Here's the rub:Buffett had just made the biggest investment of his career: a $34 billion purchase that put him in position to have a virtual monopoly in one of the hottest and fastest-growing oil fields in the world.Production at this oil field is growing an astounding 30% to 50% a year.Virtually all of America's biggest oil companies — Exxon, Hess, and Continental — have a heated interest in this huge, dynamic oil field.
There was just one thing missing for Buffett...
One small piece of legislation in Congress had the power to prevent Buffett from securing a lucrative, long-term stranglehold on America's fastest-growing oil field.
If Buffett could just find a way to get that nagging bit of legislation killed, it would all but guarantee his $34 billion monopoly would be the single most profitable investment he ever made.
All he needed was one small favor from the president...
On July 14, 2010, Warren Buffett and President Obama met behind closed doors at the White House. It was during this private meeting that the two made a historic deal that would benefit both men greatly.
Just a few months later, we started hearing about the "Buffett Rule," a new tax rule that would raise taxes on America's wealthiest people.In return for his endorsement of this divisive tax plan, Buffett received certain favors that guaranteed his latest investment would be a multi-billion-dollar winner.As you might expect, Buffett has already made a small fortune on this deal...In fact, in about three years, this deal has been worth more than $22 billion for Buffett.But the most important thing is that, as this moves forward, individual investors now have a chance to get in and grab up to 519% gains...And that's why I'm revealing the details of "Buffett's Bribe" today...
In fact, Buffett's low-risk profit from this backroom deal will likely run as high as 25% per year — for the next 10 years.At that rate (a very conservative one, I might add) your total haul would be 519%.I've run the numbers every way 'til Sunday, and they're dead-on (though I should tell you my profit estimates may actually be on the low side)...Quite simply, individual investors don't usually get the chance to follow a top investor into such an easy profit situation.
That's why I'm exposing this story to you now.Because if you choose to act, you could do just as well as Buffett will on this deal... and maybe even better.These Easy 519% Buffett Profits Can be YOURS
You probably know that Warren Buffett is no stranger to making lopsided deals — deals that make him a lot of money, with very little risk.In fact, he's made a career of it.And there's a good reason for this.
You see, a "Warren Buffett investment" is more than just a cash position...
It's credibility, too. Warren Buffett's reputation as the world's greatest investor means companies actively seek out investments from the Oracle of Omaha. And once a company gets the "Buffett Seal of Approval," the stock price inevitably rises...
Just check out this little timeline:
- Lehman Brothers went bankrupt on September 15, 2008. This debacle sent the stock market into a free fall. Financial stocks were among the hardest hit. The Financial Select ETF plummeted 32% over the next three weeks.
- Eight days later, while investors around the world panicked, Buffett invested a cool $5 billion in Goldman Sachs.
- While there's no proof Buffett had advance intel that the $700 billion TARP bailout was coming, he told CNBC, "If I didn't think the government was going to act, I would not be doing anything this week..."
- Within a few weeks, Goldman hit a low of $53.31. They then got $10 billion in TARP funds, and by the end of 2009, shares were at $165.
- Buffett made around $10 billion. YOU could have made a nice stake as well by following the guru to 209% gains.
- Less than a month later, Buffett invested $3 billion in GE (who then got an unprecedented $139 billion guarantee for its debts). The stock bottomed at $7.06... but was pushing $20 within a year.
- Again, you could have followed Buffett to netting 170% gains.
- Buffett followed his GE play with a Bank of America deal that analysts have described as "ruthless." In August 2011, he took a $5 billion position in the bank.
- BoA had been selling off all through the year, dropping from over $14 per share down to $6.30. Yet, once Buffett plunked down his cash, the stock jumped 26% on the very day the deal was revealed.
- By March 2012, the stock was up to around $10. That's a 95% gain for Buffett — and gains YOU could have pocketed as well.
That's why his latest move is such a perfect opportunity — but ONLY for folks who take advantage quickly.As I've shown you, there's a pretty quick turnaround on these deals. The gains happen in as fast as a month... so only those with early stakes truly see the full gains.Now, I want to be clear: I'm not recommending Bank of America, or General Electric, or Goldman Sachs as an investment for you at this time...No, I've found a much better opportunity for savvy investors — an investment that will inevitably profit from the twin forces of Buffett's savvy and America's production of fossil fuels.This is about as powerful a one-two punch as I can imagine.You Can TRIPLE the Market's Gains — for the NEXT 10 YEARS!Hello, my name is Brian Hicks.
I'm the founder and president of a multi-million-dollar investment research firm called Angel Publishing.Much like how an "angel investor" provides cash for a promising start-up company, my firm provides profitable investment research for individual investors tired of being victimized by Wall Street's profiteering.I've seen a lot in my 18 years in this business. I've traveled on wealthy investors' yachts, participated in venture capital funding of start-up companies, drinks and dinners with CEOs — you name it.I don't really have time for the investment conference circuit any more. Those trips to New York, San Francisco, and New Orleans are too much of a grind on a family man like me.And I got tired of sharing my profitable insights on CNBC, Bloomberg and Fox News...They never knew what to do with a real-life profit opportunity.I'd rather focus on my true measure of success: the thousands of investors who have used Angel Publishing research to secure mammoth paydays for themselves.In fact, I keep a special file cabinet for the letters from individual investors like you that have paid off their homes, sent their kids to college, and bought brand-new cars with the profits they've taken...Like Cheryl, who wrote to say:
Here's what Mike said:
Judy had this to say:
N.W. took the time to tell me:
These investors are no different than you. All they did to achieve life-changing wealth was act on the recommendations they received from me and my staff of forward-thinking analysts.Now I'm exposing an incredibly simple, safe, and profitable situation that could help you secure 519% gains.It's a "Warren Buffett" investment, so you know it's safe and very likely explosively profitable.And because it involves one of the hottest oil fields in America, there's tremendous upside.How can I be so sure that you can make five times your money safely and easy?Simple...
First, as I've said several times, this is a "Warren Buffett" investment we're talking about. It's all but guaranteed not to lose money.
Buffett's unique position has allowed him to make $4 billion in cash — plus capital gains of approximately 72% on this deal already. In other words, he's up around $22 billion in just three years.This is exactly the type of investment he's used to make himself the second richest man in America...
And it can help make you wealthy, too.
Second, we're talking about a small group of stocks with significant upside. Given recent earnings growth for these companies, these stock prices should grow +20% a year... for the next 10 years.Most investors simply have no idea how bullish the outlook is for these stocks.
Finally, there are above-average dividends involved that will juice your profits even higher. These are the kind of dividends that can shore up any retirement portfolio and create wealth for generations to come.Plus, these dividends are prime candidates to get much bigger in the near future (I'll show you why in a minute)...
My research indicates this investment should easily turn an average of 25% every year for the next decade.Now, 25% gains over the course of 12 months may not sound like much... but if you can grow your money at that rate for 10 straight years, you're talking about a 519% profit.
And this will be one of the easiest and safest 519% gains you've ever seen (and these days, I'm sure you know that worry-free profits are worth their weight in gold). Not only that, but in just a few years' time, you could be cashing dividend checks equal to 40% of your initial investment — just like Warren Buffett does on investments like Coca-Cola.
He now cashes $400 million checks every year on his original $1 billion investment in Coke.Starting today, you could safely and easily set yourself up to receive huge annual paydays, no matter what the economy or stock market does.
It's like getting thousands of dollars in "free" money every year.
This is fortune-building the Warren Buffett way.
The Real Buffett Rule:
You Scratch My Back, We ALL Make Money
Maybe you've heard of Warren Buffett's Two Rules of Investing...Rule #1: Don't lose money. Rule #2: Don't forget Rule #1.Yeah, Buffett's got a pretty good sense of humor. But when it comes to his investments, he's not joking around. No one should be surprised to learn he will do whatever it takes to guarantee he comes out a winner.
He's not going to lose money (and you won't either).
Sometimes, that means Buffett crosses the line and invests on insider information.Of course, no one can prove anything. But we can certainly ask some questions, like:
- Did Warren Buffett have insider information that government bailouts were coming to the financial sector when he invested in Goldman Sachs? Or was the fact that Goldman got $10 billion in TARP funds just weeks after Buffett invested a profitable coincidence?
- Did the FDIC give Buffett a heads-up that it would back $169 billion in GE debt, paving the way for him to make billions? After all, that $169 billion guarantee came just a month after Buffett's $3 billion GE investment...
- Was Buffett tipped off that Bank of America would pass its "stress test," clearing the way for billions in profits? Most investors felt that Bank of America would not pass the stress test due to billions in mortgage liabilities.
It's also clear that companies like GE and Bank of America were eager to align themselves with Buffett, as they're well aware that a Buffett investment would give other investors the confidence to invest at a time when there was much uncertainty about the companies.
And this time, it goes even deeper than that...When you consider Buffett's cozy relationship with Obama and members of his administration, it shouldn't come as a surprise that there's been an attitude of "you scratch our backs, we'll scratch yours."
So...
If you've ever been curious as to why Warren Buffett is the only prominent businessperson to consistently endorse President Obama...
If you've ever thought there was something unusual about Obama's "Buffett Rule" that would raise taxes on the wealthy...
Then please read on, because this story gets even more interesting — and potentially profitable for you.
Warren Buffett's $34 Billion Bakken Oil Buy
On Tuesday, November 3, 2009, Warren Buffett completed a $34 billion deal — the biggest in Berkshire Hathaway's history.
The target? America's second largest railroad: Burlington Northern Santa Fe (BNSF).
At the time, Buffett said: "Berkshire's $34 billion investment in BNSF is a huge bet on that company... and the railroad industry... Most important of all, however, it's an all-in wager on the economic future of the United States. I love these bets..."
I expect that when we hear the words "all-in wager on the economic future of the U.S.," many investors assume Buffett is talking about growing, spending, and the need to ship goods around the country via railroads...
But the true insight behind Buffett's railroad investment shows much more savvy.In fact, the real reason he put up $34 billion for the Burlington Santa Fe railroad is what makes this such a significant profit opportunity for you.
And the fact that Buffett — once again — has stacked the deck to favor his investment means these profits are virtually guaranteed.
Because when Buffett bought the Burlington Northern railroad, he didn't have his sights set on shipping corn, or soybeans, or furniture.
No, he was buying unfettered access to the very key to America's economic future: fossil fuels. And not just any fossil fuels...
Buffett's Burlington Northern is the main supply line for America's hottest oil play...
I'm talking about North Dakota's Bakken Shale Oil Field.The Bakken is America's fastest-growing oil field. And the Bakken discovery has been a godsend — it's put the American oil industry back on the map.
You see, U.S. oil production peaked back in 1984 at 8.9 million barrels a day. Oil production then declined every year for the next 24 years, finally hitting bottom in 2008 at 4.9 million barrels a day. (No surprise oil prices hit their highs in 2008.)
But according to the Energy Information Administration (EIA), 2012 production was up 29% from the 2008 low... 2013 should see 6.7 million barrels a day — an amazing 37% increase in just five years.To put that in perspective, 60% of America's oil was imported in 2005. Today it's just 42%.And nowhere is the boom in American oil production more pronounced than in North Dakota's Bakken Oil Field.
The Bakken: America's Fastest-Growing Oil Field
It's pretty simple, really.
The Bakken Shale Oil Field in North Dakota has billions of barrels of recoverable light, sweet crude oil. Estimates range from 6.3 billion barrels to over 30 billion barrels of oil.
Yes, that's a wide range, for sure. And it's also true there's still a lot that's unknown about the Bakken.
But what we do know about this oil field is this:- It's the fastest-growing oil field in the U.S.: 2011 production was 152 million barrels; 2012 production hit 190 million barrels.
- Bakken shale oil is light, sweet crude — every bit as good as the best Saudi Arabian oil.
- Bakken land prices continue to rise.
- Warren Buffett spent $34 billion to get exposure to Bakken oil production.
After all, Buffett doesn't like risk and he doesn't take chances.He only invests in "sure thing" winners...
Like Goldman Sachs and GE in 2008. Like Bank of America in 2011. And like the $26 billion in profits he's already made on his $34 billion investment in just three years.It's well-known that Buffett has no problem throwing his weight around to get the best deal possible.And as I'll show you, he went to some extraordinary lengths to ensure his $34 billion deal would be a long-term winner.
Buffett's Bakken Deal: Game of Thrones
As I documented before, Warren Buffett requested a private meeting with President Obama in 2010. The two men sat down behind closed doors on July 14 of that year.
According to a White House official, the two men met "to discuss the economy and our ongoing efforts to work with the private sector to stimulate growth and create jobs."
But the evidence says it was at this meeting that Buffett got what he needed to guarantee himself — and you, if you so choose — a ten-year supply of consistent, market-beating profits.
You know what the president got... Just a few months after this high-powered meeting, Obama began making political waves with the Buffett Tax Rule.
And what did Buffett get? He got the proposed legislation for the Keystone XL Pipeline killed.
That's right. This is one of the boldest examples of backdoor dealing I've ever encountered.You see, the Keystone Pipeline was proposed by the TransCanada Corporation to carry oil from Canada's oil sands to the Gulf of Mexico. It would also provide a much-needed link to North Dakota's Bakken oil field.
There was a huge outcry when Obama killed this pipeline proposal.
Maybe you heard that the Keystone Pipeline was killed for environmental reasons... or maybe you saw the reports that Obama nixed the Keystone proposal because the bill was being fast-tracked.But those reasons are just a smokescreen.
So far as I'm concerned, the REAL reason the pipeline was scrapped was Warren Buffett.You see, without the Keystone Pipeline to move their oil to market, the Bakken's oil producers are forced to turn to — you guessed it — railroads. And not just any railroad...Buffet's Burlington Northern Santa Fe is the only American railroad that serves North Dakota's Bakken.It couldn't be any more obvious:
- The Washington Times said: "Warren Buffett... stands to benefit from the president's decision to reject the Keystone XL oil pipeline permit."
- Alison Ritter, of the Department of Mineral Resources noted: "Oil that would have moved by the Keystone XL is now going to shift to rail transportation."
- A BusinessWeek reporter pointed out that Burlington Northern has a "bigger position in what I think in the next cycle will be faster-growing elements — intermodal, the Bakken, international grain."
- Justin Kringstad, director of the North Dakota Pipeline Authority, said rail shipments are expected to "increase exponentially with increased oil production and the shortage of pipelines."
Buffett now has +190 million barrels of Bakken oil in his back pocket. Right now his railroad hauls around 25% of Bakken oil... and profits and revenue are way up.But with a newly won monopoly on Bakken oil, surely you don't expect Buffett to be satisfied with just 25%...
He's already expanding the railroad's capacity to be able to handle up to 70% of the light, sweet crude coming out of the Bakken.
Railroad profits will go through the roof — and so will the stock prices (and the dividend payments)!Buffett's Bakken Oil monopoly has shined a profit spotlight on an overlooked and unloved group of stocks: the railroads. For individual investors, this is the ground floor of a powerful, long-term bull market for a select few railroad companies.
Easy Profits from Buffett's Oil Monopoly
Earning life-changing wealth from the stock market doesn't have to be risky, difficult, or time-consuming. In fact, it can be downright simple.
Just take a look at what the world needs most right now...Energy. Power. The fuel to turn the economic engine.
It's no coincidence the U.S. economy started struggling when oil prices broke sharply higher in 2007 and 2008. But now, America's oil production is growing for the first time since 1991. Oil imports are falling. And a select few railroads are vital to America's growing energy independence.Warren Buffett knows this...
But still, most investors are simply unaware of the advantages of railroad shipping.
For years, the railroads have been a dying industry: rusting rails, rotting ties, slow locomotives belching black clouds of smoke.
But the fact is the railroad industry is undergoing a stunning rebirth, much like America's oil industry.New rails are being laid... decommissioned routes are being put back online... new railcars and engines are being built at the fastest pace in 25 years.
Why? Because it's cheaper to ship by railroad than an 18-wheeler — by a factor of 10.
According to the U.S. Department of Transportation, a train gets about 100 miles per gallon per ton of cargo, while a truck gets just 10 miles per gallon for the same payload.
One standard railcar can hold up to 100 tons of densely packed freight; to ship that much by truck would take four standard tractor-trailers.
That means the average train hauls as much freight as 280 trucks.
And these days, with diesel selling for over $4 a gallon, Buffett clearly understands the fuel efficiency of trains is an attractive alternative to trucks.
But it doesn't end there...
Because as important as fuel efficiency and shipping goods is, it's the massive oil and natural gas boom in America that will keep driving these trains to higher and higher stock prices.
Let's consider the Bakken Oil Field again. In February 2012, Bakken crude oil prices plunged to $71 a barrel, even though West Texas oil prices were steady around $100.What could possibly cause such a huge drop in price for the Bakken's high-quality oil?
Pipelines.
There's simply not enough pipeline capacity to handle the 700,000 barrels of oil coming out of the Bakken every day. And when a surplus builds, prices fall.
In fact, current pipelines can only handle around 400,000 barrels of Bakken oil a day. That leaves 260,000 barrels a day that for the railroads. That's why Buffett's railroad runs between 660 and 990 oil cars out of
North Dakota every single day.
And it gets even better for Buffett, because Bakken oil production is expected to hit 1 million barrels a day in the next two years... and Buffett is expanding his railroad to be able to haul 700,000 of those barrels.You've got to hand it to Buffett. He's used his influence to lock in a consistent, long-term profit source.And now you can lock in the exact same long-term profit source, safely and easily...Because the energy-driven boom for railroad companies has only just begun.
Start the Clock to 519% Gains TODAY!
According to the U.S. Energy Information Administration, (EIA) rail deliveries of oil and petroleum rose almost 40% in the first half of 2012.
You can see it on charts like this one:
And it's not just North Dakota's Bakken...
The Association of American Railroads says overall, U.S. rail shipments of oil have nearly quadrupled in a year: 88,026 railcar loads of oil were shipped in the first half of 2012, up from only 22,714 in the first half of last year. And each car can carry 700 barrels of oil.It's critical you understand the huge jump in oil shipments by railroad is happening throughout North America.
In other words, Buffett's not the only one who's making out like a bandit...
One railroad company recently told attendees at an investor conference the company expected oil shipments it carries to rise from 13,000 carloads last year to at least 70,000 carloads sometime in 2013. Refiner Phillips 66 has bought 2,000 cars to bring crude from the U.S. interior to its refineries all over the country. Tesoro has started bringing crude oil to its Anacortes, Washington refinery by train; Marathon Oil Corp. ships about 14% of its Bakken production by rail. Norway's Statoil secured with long-term leases for more than 1,000 railroad cars to move some 45,000 barrels of crude per day to refiners across North America (and by the way, General Electric is the biggest lessor of railcars in the U.S.) EOG Resources built a railcar facility at St. James, Louisiana, to deliver 20,000 barrels a day from the Permian Basin in Texas. Canada's largest refinery, Irving Oil in New Brunswick, Canada, is ramping up its crude offloading capacity from two cars a day to 100 cars. Even pipeline company Enbridge is getting on board: Two new railcars stations will put 80,000 barrels a day on the rails in 2013.There should be no doubt that oil shipments by railroad will continue to increase. After all, U.S. oil production is expected to nearly double — from 6 million barrels a day to 11 million barrels a day in the next 10 years.
And most investors simple have no idea this is happening...
There's no doubt oil shipments will continue to push railroad stocks higher for at least the next 10 years. But you should know it's not just oil...
The railroads also play an indispensable role in developing America's immense natural gas resources.Most investors don't know it, but hydraulic fracturing — the process by which oil and natural gas-rich shale rocks are broken apart to release the fossil fuels — is completely dependent on railroads.
Why?
Sand.
Every natural gas well in America that uses hydraulic fracturing, or fracking, requires between 3,000 and 10,000 tons of sand. And 13,000 new shale gas wells are drilled every year.
Just a couple weeks ago, the Minneapolis Star-Tribune said: "Hydraulic fracturing — the oil drilling technique widely known as 'fracking' — has created a major new business for railroads, because each horizontal well requires between 3,000 and 10,000 tons of sand."
And as it happens, Minnesota and neighboring Wisconsin are home to the biggest sand mines in America.Now, I'll confess I was unaware sand mines were big business until recently. But did you know Wisconsin alone has 60 new sand mines in the works?
And railroads are the only way to move that much sand.
One railroad has already seen a 265% increase in fracking sand shipments in the last 24 months. This company is investing millions to open up new tracks in Wisconsin and Minnesota to get even more sand to market.
And with 60 new sand mines coming online, this railroad will be plenty busy...
STOCK GUMSHOE EXPLAINS:
So which one is the “top rated railroad stock” in this special report? Thinkolator says it must be Union Pacific (UNP), which is the biggest and arguably the most expensive of the major US railroads — and also the one that has a strong position in that sand shipping, and a secondary position behind Burlington Northern in North Dakota.
The slightly smaller ones, CSX (CSX), Kansas City Southern (KSU) and Norfolk Southern (NSC), are still big companies ($10-20+ billion market cap each), and with the exception of KSU they’re not valued quite as high — largely because they depend a bit more on different volume drivers (like coal for CSX, or intermodal and Mexican trade for KSU) and have less exposure to these growth markets, though everyone seems to be buying plenty of tank cars.
The other railroads are really talking up their oil transport capacity in many cases, since that’s what investors want to hear in the conference calls after they’ve been warned about coal mine shutdowns in Appalachia … but KSU is a Southern US-Mexico railroad and both CSX and NSC have routes that are almost entirely east of the Mississippi and focused largely on the industrial midwest and the East Coast coal mines and ports. UNP and BNSF have been the big midwest grain carriers in the past, and are the companies with North Dakota and Western exposure now, but all of the railways are diversified across major intermodal, commodities, and manufactured goods (like autos) shipping to some degree, and they are all constrained to some degree by rights of way and regional route networks that were put together and designed for flows of trade 50 or 100 years ago. They’re a lot more efficient and less flexible than trucks, and a lot less efficient and more flexible than pipelines.
And frankly, they’re all doing pretty well right now. You can also add in the two major Canadian railroads, Canadian Pacific (CP) has gotten a fair amount of attention from investors over the past couple years as Bill Ackman has built a major position and pushed through some management changes, which have helped the stock price tremendously, and Canadian National Railway (CNI) is probably the company that should benefit close to as much from the Bakken and Canadian oil as Union Pacific based on their route map (CNI has a central US route down to the Gulf of Mexico, and also touches both coasts in Canada). The other big publicly traded North American railroad is Genesee & Wyoming (GWR), which runs a lot of short lines around the country (and in Australia and Canada) and just bought competitor RailAmerica last Fall, they have good exposure to frac sand mines in the Midwest, and to the Marcellus shale.
The Motley Fool has recommended CNI and GWR in the past, I know, though their CNI pick was several years ago. Railroads have been pretty hot for the past year or so and most of the rail stocks are at or near their highs. So none of these are dirt cheap, but they’re all seeing business be better than the coal slowdown would lead you to expect, and they are mostly cyclical companies that move on demand for natural resources and on rising global trade in general, so folks may also be piling on as optimism rises for a real economic recovery taking hold. I’ve been satisfied with getting my exposure to the railroads through Berkshire Hathaway so far, but there is something compellingly “real” and delightfully monopolistic about the railroads — there’s always reason for concern, since the railroads have been awful businesses for long stretches of time in the past, too, but perhaps the modern day railroad barons are, well, running a better railroad.
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