James Altucher on Profiting Via 13F Filings

By on May 21, 2012

The often controversial James Altucher, author of the entertaining book I Was Blind But Now I See: Time to Be Happy was featured on Yahoo! Finance Breakout advising investors to “follow the whales.”

Jeff Macke interviewed Altucher who said following the 13F filings of well-regarded investors could lead to profitable investments.

Definition of 13F filing from Investopedia: A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment Managers Form. It is a quarterly filing required of institutional investment managers with over $100 million in qualifying assets.

Altucher brought up George Soro’s investment in JPMorgan (JPM), which was probably made when the stock was in the 40’s. Altucher pointed out that Soros had analysts research JPM before making the purchase, which an individual investor gets for free. With the stock of JPM down 20% from where Soros made his purchase, Altucher compared it to “investing in the S&P 500 on steroids.”

Altucher mentioned Warren Buffett’s recent investments in IBM (IBM), Wal-Mart (WMT), Wells Fargo (WFC), General Motors (GM), and Viacom (VIA).

Macke challenged Altucher pointing out 13F filing information is 45 days old to which Altucher responded that Buffett was a buy and hold investor and not daytrading.

Altucher compared Buffett to “a little kid intern working for me” whose stock picks investors are able to buy at a discount because the market is down.

Altucher mentioned Dan Loeb, up 20% a year for the past 15 years, buying Yahoo (YHOO). Altucher questioned why an investor wouldn’t follow this trade.

Macke asked Altucher what other big names investors should follow, to which he responded Carl Icahn, Barrington Capital, Steele Partners, and 13G filings submitted by activist fund managers.

The interview continued with Altucher commenting on Icahn’s investment in the downtrodden Chesapeake Energy (CHK), – “drilling in the all the right places…the U. S. is the world’s next Saudi Arabia…it’s a home run.”

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