Rich people cheat.
In business and in life.
They understand how to set up unfair advantages for themselves.
It’s not about being ruthless;
It’s about knowing the rules of the game and bending them to your favor.
For example… Hedge funds don’t need to disclose anything.
Their trading strategies, how they deploy their funds – none of it.
They play in the shadows.
In a realm where the rules don’t apply to them.
Competing with them is like playing poker against someone who’s working with the dealer.
In this article, I’m going to share with you how billionaires and high-profile politicians play by different rules.
But before we dive in, a quick disclaimer: everything expressed here is an educated guess or opinion.
I can’t afford to be sued, haha.
Take this for example:
http://www.businessinsider.com/gv-backed-orbital-insights-images-from-space-track-oil-storage-2020-4
A startup backed by Goldman Sachs is measuring shadows from space to track the world’s oil supply.
They’re using satellites to literally see how much oil is left in the barrel. And it’s yielding shocking numbers that no one else has.
Meanwhile, you’re here trying to use the price of complementary and substitute commodities to guess the oil price.
Big Daddy is looking right into the pot, measuring exactly how much oil is in there to predict the price.
Who do you think is going to win that game?
And in this case…
https://www.businessinsider.com/congress-stock-act-violations-senate-house-trading-2021-9
78 members of Congress have violated a law designed to prevent insider trading and stop conflicts of interest.
Yes, you read that right.
The so-called leaders, the ones supposed to uphold the law, are breaking it.
It got me thinking: why wouldn’t hedge fund managers take 1% of their portfolio value – potentially hundreds of millions of dollars – to form a Super PAC and lobby politicians?
An unwritten deal could be in place for insider information on when influential bills are to be passed.
This way, they’re exposing their entire portfolio to this time-sensitive information.
And the kicker?
They don’t have to disclose their trading strategy. It’s all perfectly legal.
SUS!
I noticed something.
Rich people play games they can’t lose.
When billionaires lobby the government using millions of dollars, people think they’re being patriotic, shaping policies for the good of the country.
But now, you and I know the truth.
Lobbying isn’t an expense – it’s an exotic financial investment.
So, what do we do with this knowledge?
We can either complain, or capitalize on it. I choose the latter.
Imagine you’re a tech founder in Silicon Valley.
You catch wind of the potential of Nvidia chips in widespread AI systems.
Will you use that insider information to invest in Nvidia? Of course, you would.
While the rest of the world complains, you and I are going to find these unfair advantages and capitalize on them.
