What Is Warren Buffett’s #1 Private Investment? [Buffett’s $12 Billion Lie]

Dave Forest recently released a presentation with the heading “Warren Buffet’s #1 Private Investment” or “Buffett’s $12 Billion Lie” (depending on the version you encountered although they were pretty much similar).

Before we even get to it, I should point out that he didn’t have a sit down with Warren Buffet where he picked his brains about some mysterious investment vehicle hidden from us mere mortals. 

It was merely a term he coined to refer to a kind of private investment that most investors haven’t used. Dave implies that it was “reserved” for billionaires but in reality, as you’ll find out, it is not that obscure.

Before I start…

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Warren Buffet’s #1 Private Investment Review

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Introduction to Warren Buffett’s #1 Private Investment

The presentation about Warren Buffett’s #1 Private Investment was hosted by Rachel Bodden. She and Dave Forest discussed an investment vehicle offered by around 6,100 publicly traded company that can deliver disproportionately large returns.

Dave tells us that although these private investments may offer extraordinary gains of more than 7000%, they were previously reserved for the wealthy (people like Buffett).

However, a little-known SEC loophole has opened things up for “ordinary” investors, granting them access to those investments.

So, what private investment are they talking about?

The first clue we get is that they have nothing to do with options, cryptos, and IPOs. In fact, they involve real companies.

And if you make it through the presentation, you will learn that Dave Forest is referring to Warrants.

Warrants are usually confused with options because they have some notable similarities. First, they are special types of contracts that give the holder the right (not the obligation) to buy some assets by a specified date at a certain price.

They also have special labels, which vary depending on the convention; most have the letter ‘W’ somewhere within the label.

However, unlike options which are issued by some central entity like CBOE, warrants are issued by the companies.

Warrants are not that difficult to understand and I’ve actually done a review of a presentation called Gold Placements by E.B. Tucker where he was discussing investing in warrants for a gold company.

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Who Is Behind the presentation “Warren Buffett’s #1 Private Investment”?

Dave Forest is an investment analyst who’s part of the editorial team at Casey Research. He has been working for the firm since 2004 and edits the newsletters International Speculator, Strategic Investor, and Strategic Trader.

He is a geologist and even spent 20 years working in the mining industry. One of his engagements was serving as a managing director of Notela Resource Advisors, an advisory firm specializes in natural resource investments.

He has built companies from scratch and raised more than $80 million proving that he is familiar with how private companies work by and large. This is particularly relevant in the context of the presentation.

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How Does Warren Buffett’s #1 Private Investment Work?

The company that issues the warrants dictates how they will function. For example, there are some warrants that can be traded publicly while others, you can only buy directly from the issuing company.

If you are still new to the whole concept of warrants and would like to learn more about them, Dave Forest has a 5-video warrants master course that explains how they work.

He shares the full story behind warrants and how to use W codes to trade them using your existing brokerage account. In addition to that, he also demonstrates how to spot warrants that have the potential to earn triple and quadruple digit profits.

To gain access to all that, you need to subscribe to the Strategic Investor newsletter. The subscription will entitle you to monthly newsletters, access to the encrypted website, as well as the master course. 

You will also receive free reports:

• The 2021 Gold Spike Action Plan
• Strategic Profits Library
• The 4 best tech-related stocks
• The Warrant Play Set to Triple Or More

How much does a subscription to Strategic Investor cost?

The usual subscription price is $199/year but there is an ongoing discount plan which means you can get it for only $49.

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Pros of the “Warren Buffett’s #1 Private Investment” pitch

• It introduces us to warrants (at least to those who’ve never traded them).
• You get to subscribe to the Strategic Investor at a discount.

Is the “Warren Buffett’s #1 Private Investment” pitch Legit?

I think Dave Forest’s “Warren Buffett’s #1 Private Investment” pitch is legit because he is an investment guru with a rich background in the financial market both as a trader and as a newsletter editor. He is also a geologist with two decades’ worth of experience in the field. 

The biggest concern people have with such presentations is that they are pretty heavy with the sales language. For example, they namedrop Warren Buffett in the title of the presentation and that is a bit misleading because it implies that Dave somehow knows a secret investment by the tycoon when he is in fact referring to a type of investment.

That said, if you look past the sales language, you can see that there are valid points and it does provide you with value.

Warren Buffett’s #1 Private Investment Verdict

We have established that the presentation is not about a secret investment or startup that Warren Buffett has poured money into but about warrants. Speaking of the investment that netted Mr. Buffett $12 billion, Dave was referring to an investment in warrants issued by Bank of America.

Forest is correct when he says that Warrants can deliver gains much bigger than stocks if a stock goes up. But at the same time, they can lose even more money than stocks if the stock falls. Therefore, everything will work seamlessly if things go well but go wrong if the stock loses value. 

Finally, before you sign up for Strategic Investor, learn more about it and the investment strategy that Dave employs.

Before you leave

If you’re tired of scams and want a real solution for making money online check out my no.1 recommendation.

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