The world’s top Great Investors are the pillar of the economic world. They all have made a long story of their success and they helped millions of new investors with similar returns.
Great investors earned a lot of money by staying with their good investment strategies. Their strategies weren’t very difficult or complicated one. They only look at the basic financial data of a firm and try to find value in it. If they think there is value, they invest and generate lots of profits!
He was the Guru of Warren Buffett. He is the most well-known person in the business world. It’s important to note, though, that he became the “Inventor of value investing” because of his work. In the stock market, he generated huge wealth for him and his customers without taking large risks. He used financial analysis to generate income when investing in stocks. He also said that an investor should have a “margin of safety” in his investments, which meant purchasing a business below the price what a business should be worth.
He is the founder of The Vanguard Group. He firstly worked at Wellington Management Company, where he soon become Chairman. Even though he was fired because of a bad merger, he learned a lot of knowledge. He found the Vanguard Group after that. His unique ideas make his company the second-largest mutual fund company.
He is one of the best investors in the world right now because of way he had when he started and how much money he was able to grow it into. Before he started working with other people, he worked at a number of investment jobs, the last of which paid him $12,000 a year. When he talked about his partnerships, he had about $174,000 in savings. Today, he has turned that first amount into about $50 billion. This is how much money he has now.
Buffett’s investment strategy is very simple: buy low-priced companies, improve them through management or other changes, and see long-term stock price gains (also known as value investing). His goal is to find companies that he can understand and keep things very simple. Many people have criticized him for not investing in tech companies or other businesses, but by sticking with what he knows, he has been able to make a lot of money.
Because Philip Fisher is the first person to invest in growth stocks, he is called the “father of growth investments.” He started his own investment firm, Fisher & Company, in 1931. He ran it until 1999, when he retired at the age of 91, when the company was still going strong. Fisher made a lot of money for himself and his clients over the course of his 70-year career.
Investing for the long term was what Fisher did. For his work, he bought Motorola stock in 1955 and kept it until he died in 2004. He came up with a fifteen-point list of things to look for in a common stock. The list was broken into two parts: management’s traits and the business’s traits. Integrity, conservative accounting, accessibility and a good long-term outlook, openness to change, good financial controls, and good employee policies were all important for management. Important business traits would include a growth mindset, high profit margins, a high return on capital, a commitment to research and development, a superior sales organization, a top position in the industry, and unique products or services.
Bill Gross is called the “king of bonds.” He is the founder and manager of PIMCO, and he and his team have more than $600 billion in bonds under their control.
Bill’s main goal is to buy individual bonds, but he has a way of investing that looks at the whole portfolio. He thinks that long-term success in investing is based on two things: being able to think about and communicate a long-term plan, and having the right structure in your portfolio over time to take advantage of this plan. People should think about the long term for about three to five years, he adds. This way, they don’t get emotionally whipped up by the day-to-day markets.
John Templeton is the person who came up with the modern mutual fund. Because of what he did in 1939, he came up with this idea. He bought 100 shares of every company on the NYSE for less than $1. It cost him $10,400 to buy all of the businesses. 34 of these businesses went bankrupt in the next four years, but he was able to sell the rest of them for $40,000. This made him think about diversifying and investing in the whole market. Some businesses will fail, but others will make money, so he had to think about this.
John Templeton was said to be the best bargain hunter in the world. He would also look for companies around the world when no one else did. He thought that the best value stocks were the ones that no one else was interested in. He also ran all of this from the Bahamas, which kept him away from Wall Street, where he worked.
Carl Icahn is known in the world of investing as either a ruthless corporate raider or a leader in the fight for the rights of shareholders. You might have a different opinion if you work for the company he wants to take over. Icahn is a value investor who looks for companies that he thinks aren’t well run. He tries to get on the Board of Directors by getting enough shares to be able to vote for him. Then, he changes the senior management to something he thinks will be better at getting good results. He has been very good at this for the last 30 years.
It isn’t true value investing, but he does look for companies that aren’t being paid enough for their money. He only looks for things that are undervalued because of bad management, which he thinks is easy to fix once you are in charge.
Most people know Peter Lynch because he worked with the Fidelity Magellan Fund for more than 13 years. During that time, his assets under management went from $20 million to over $14 billion. Even more important, Lynch beat the S&P500 Index in 11 of those 13 years, and he had an average annual return of 29% for those years.
A lot of people think of George Soros as the person who “broke the Bank of England.” It cost him $10 billion to short the British Pound in September 1992, when he did that. He was right, and he made more than $1 billion in a single day because of it. It is thought that the total amount of trade was close to $2 billion. For running his Quantum Fund, he is also well-known. The fund made an average annual return of more than 30 percent while he was the lead manager.
Soros looks for broad macroeconomic trends and turns them into high-risk bets on bonds and commodities. Soros is the only one of the Top 10 Greatest Investors who doesn’t have a clear strategy. Instead, he used a speculative strategy that came from his gut.
A lot of people won’t know this person unless they work on Wall Street. Steinhardt had a record that still stands out on Wall Street: over 28 years, he made more money than the S&P 500 did in the same time period. He did this with stocks, long and short options, currencies, time horizons ranging from 30 minutes to 30 days, and a lot of different types of time frames. He is said to have been a long-term investor, but he also made money in the short term as a “strategic trader.”
That’s all for Top Great Investors