Buffett and Gates See Gold in Scrap Metal
The two richest men on the planet have increased their holdings in the recycling business with more than 100 trades combined over the past 3 years, and they have amassed more than 66 million shares in Republic Services (NYSE: RSG), a recycling and waste management company. At a price per share at $31, that's an investment of a whopping $ 2 billion!
A share price of $31 isn't exactly a penny stock, so what has this got to do with your portfolio? I'll tell you in a second:
Because I have to give you another little piece of information: In addition to Gates' holdings of $1.7 billion in Republic Services, he owns stock worth more than $500 million in another recycling company, Waste Management (NYSE: WM), which trades at around $36 at the moment.
Bill Gates and Warren Buffett are the two wealthiest men in the world, and they are known for only investing in the future moneymakers. So clearly, Buffett and Gates have identified waste and recycling to be among the true moneymakers of this decade. I am fully confident even if you were just to follow their lead, recycling stocks could be a big winner in your portfolio.
But still, neither of these stocks are penny stocks, I hear you say. And yes, both of these stocks are outside our normal focus. They are way too expensive, and why would you want to invest in shares that have fluctuated around the exact same (high) price point for the past ten months, giving little gains to the trading investor?
Sure, you could buy Republic Services Group (RSG) for about $31 a share and see meager 5-10% gains over the next years. Now that Buffett and Gates have got the lion's share of the stock, I expect little growth in shares prices there.
Or you could go buy shares in Resource Exchange of America Corporation (RXAC), another recycling company that you can buy for just $0.59 and watch it go up 600% within just a few months.
Now, who's Resource Exchange of America Corporation (RXAC)? Well, for starters, I believe RXAC is a new Republic Services in the making - a recycling powerhouse that is ramping up its business to jump right into the big-league within the next few years.
Their revenues are set to grow 1,200% in the next five years, and their profits are projected to increase 950%! Those numbers will put RXAC on the radar of the two moneymaking moguls Buffett and Gates. With growth rates like that, you can be certain Buffett and Gates will want a piece of the pie. And if you have a nice piece of that pie, you are straight on the road to riches!
In the past six months, RXAC have been making several joint ventures with asset recovery companies, recyclers, scrap yards and sellers of scrap metal. And just this week, they signed a contract with LT Trading to expand their position on the Chinese market. I tell you, they are on a tear.
Imagine what would happen if Buffett or Gates start buying shares in RXAC? The stock will not only go up (which I believe it would do anyhow), it would EXPLODE through the roof!
Expect trades at in excess of $3 in only a few months – that's a 600% increase!
So get in while you can, before Buffett and Gates gets their eyes on RXAC!
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