Would You Copy Carl Icahn? Here’s Why That’s a Terrible Idea.

TL;DR: TODAY’S EDITION

• Carl Icahn is one of Wall Street’s most famous activist investors, managing ~$8B.

• His portfolio is bold but ultra-concentrated in risky bets like Icahn Enterprises, CVR Energy, and Southwest Gas.

• Copying him sounds tempting — but backtests show disaster: –47% over 10 years vs. +285% for the S&P 500.

• Lesson: fame ≠ performance. Copycat investing works only if you follow the right investors — which is exactly what Smart Money Premium helps you do.

NOTE: Due to personal reasons, there will be no issue of Smart Money next week.

CARL ICAHN

Copycat Investing: A Double-Edged Sword

One of the best shortcuts in investing is simple: copy the smartest people in the room.

If Warren Buffett, Bill Ackman, or Stanley Druckenmiller are buying a stock, maybe you should too.

And sometimes, that works brilliantly.

But here’s the catch: not every famous investor is worth copying. Some legends make headlines while quietly destroying shareholder value. Which brings us to today’s case study: Carl Icahn.

Who Is Carl Icahn?

Icahn is Wall Street royalty. A billionaire activist investor, famous for storming into boardrooms, pushing out CEOs, and engineering hostile takeovers. He built his empire through bold, often ruthless bets, and today manages about $8 billion through his publicly traded vehicle Icahn Enterprises LP.

He’s charismatic, quotable, and a regular on CNBC. To the casual observer, Icahn looks like the perfect investor to mimic.

But if you’d done that, you’d be in for a nasty surprise.

Icahn’s Portfolio (Q2 2025 Snapshot)

Here’s what Icahn is holding right now — and why:

• Icahn Enterprises (55%)

  His crown jewel and personal empire. A sprawling conglomerate with exposure to energy, automotive, real estate, and more. But it’s also highly leveraged — meaning massive upside or catastrophic downside.

• CVR Energy (23%)

  A refining and fertilizer business. Icahn has long loved commodity bets, but energy swings are brutal for shareholders.

• Southwest Gas (7%)

  A utility company Icahn went activist on, forcing strategic changes. Stable on paper, but tied to his activist agenda.

• CVR Partners (4%)

  A nitrogen fertilizer producer — another commodity-heavy play, benefiting from spikes in crop demand but volatile in downturns.

• International Flavors & Fragrances (3%)

  A global chemicals and ingredients company. Less dramatic than his other bets, but still risky given its debt load and industry headwinds.

His other positions (Centuri, JetBlue, AEP, Caesars Entertainment, Sandridge Energy, Bausch + Lomb) are small — but the pattern is clear: concentrated, high-risk bets.

The Brutal Reality: Copying Icahn Would’ve Crushed You

Now here’s the kicker.

If you had simply copied Icahn’s portfolio, here’s what would have happened:

• Over the last 5 years, the S&P 500 would have doubled your money.

  Copying Icahn? You’d have cut it in half.

• Stretch it to 10 years: the market returned +285%.

  Icahn’s portfolio? You’d still be down –50%.

In other words: Icahn’s fame and bravado might make for great TV, but they’ve been poison for copycat investors.

Lesson Learned

Copycat investing works — but only if you’re selective.

Carl Icahn proves that fame ≠ performance. Some billionaires are geniuses at grabbing headlines, but terrible benchmarks for your money.

That’s why backtesting is crucial. Before copying anyone’s trades, you want to know how that strategy would have actually performed. Otherwise, you’re just following charisma into a cliff.

Why Smart Money Premium Exists

This is exactly why we built Smart Money Premium.

We backtested every major investor — and only include the ones who consistently beat the market. No guesswork, no headline-chasing.

Instead of accidentally halving your portfolio with the wrong billionaire, you can copy the Top 20 investors across 3, 5, and 7-year horizons. Proven, tested, and easy to follow.

And right now, we’re updating the scoreboards. If you sign up today, you’ll be among the first to get access to the brand-new data as soon as it’s ready — meaning you can start copying the right stocks before everyone else.

It’s the smarter way to invest like the pros — without playing Icahn’s dangerous game.

🔑 Takeaway

Copying billionaires can work. But not blindly.

Carl Icahn is a perfect reminder: the loudest voices on Wall Street aren’t always the most profitable. Sometimes, they’re the ones you should avoid at all costs.

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