The World’s 11 Famous Investors – Investing is a skill that can be learned and improved over time. By studying the techniques and strategies of the world’s most successful investors, one can gain valuable insights into how to achieve above-average returns in the financial markets. Here are 11 famous investors who have made a fortune from their investments and have influenced millions of others with their wisdom and philosophy.
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The World’s 11 Famous Investors
Warren Buffett, also known as the “Oracle of Omaha”, is the chairman and CEO of Berkshire Hathaway, a conglomerate that owns dozens of businesses and invests in hundreds of others. Buffett is widely regarded as the most successful investor of the 20th century, with a net worth of over $100 billion. He is known for his long-term, value investing approach, which means that he looks for companies that are undervalued by the market and have a sustainable competitive advantage or a “moat”. He also believes in holding onto his investments for a long time, as he famously said, “Our favorite holding period is forever.”
George Soros is the founder of Soros Fund Management, a hedge fund that has generated an average annual return of over 30% since its inception in 1973. Soros is known for his aggressive currency speculation and his famous trade in 1992 that “broke the Bank of England” by betting against the British pound. Soros has a net worth of $8.6 billion and is also known for his philanthropic work and political activism. One of his key investment principles is reflexivity, which is the notion that market conditions are influenced by both subjective perceptions and objective realities, creating feedback loops that may amplify market trends. Soros also advocates for the concept of “margin of safety”, which means that investors should only buy assets that are significantly cheaper than their intrinsic value, to reduce the risk of losses.
Peter Lynch is widely regarded as one of the most successful mutual fund managers of all time, as he led the Fidelity Magellan Fund from 1977 to 1990 with an annualized return of 29.2%. Lynch is known for his simple and intuitive investment philosophy: “Invest in what you know”. He believes that individual investors have an edge over institutional ones, as they can spot potential investment opportunities in their daily lives by observing the businesses and products they use and are familiar with. He also advises investors to look for companies with strong growth prospects, low debt, high-profit margins, and consistent earnings.
Benjamin Graham is considered to be the father of two fundamental investment disciplines: security analysis and value investing. He was also a mentor to Warren Buffett and authored two investment classics: Security Analysis and The Intelligent Investor. Graham’s value investing approach is based on the idea that any investment should be worth substantially more than what an investor pays for it. He advocated for rigorous fundamental analysis and sought out companies with strong balance sheets, low debt, high-profit margins, and ample cash flow. He also introduced the concept of “Mr. Market”, which is a metaphor for the irrational and emotional behavior of the stock market, which often creates opportunities for value investors to buy low and sell high.
Sir John Templeton
Sir John Templeton was one of the pioneers of global investing, as he created some of the world’s largest and most successful international investment funds. He sold his Templeton funds in 1992 to Franklin Group and was knighted by Queen Elizabeth II for his many accomplishments. Templeton was known for his contrarian and value-oriented approach to investing, as he bought low during the Great Depression, sold high during the Internet boom, and made many good calls in between. He also believed in diversifying across countries, sectors, and asset classes, as well as applying ethical principles to investing.
Thomas Rowe Price Jr.
Thomas Rowe Price Jr. is regarded as “the father of growth investing”, as he focused on finding companies with strong earnings growth potential rather than low valuation. He spent his formative years struggling with the Great Depression, which taught him not to stay out of stocks but to embrace them. Price viewed financial markets as cyclical and believed in investing in good companies for the long term, which was uncommon at the time. He also founded T. Rowe Price Associates, one of the largest mutual fund companies in the world.
John Neff was the manager of Vanguard’s Windsor Fund from 1964 to 1995, during which he outperformed the S&P 500 index by an average of 3.1% per year. Neff was known for his low-profile and disciplined approach to investing, which he called “low P/E investing”. He looked for companies that had low price-to-earnings ratios, high dividend yields, and solid earnings growth. He also avoided popular and glamorous stocks and preferred to invest in boring and overlooked sectors, such as banking, retail, and utilities.
Jesse Livermore was one of the most legendary and controversial traders of all time, as he made and lost several fortunes in the stock market. He started his career as a “plunger”, or a speculator who bets on short-term price movements, and became famous for his successful bets on market crashes, such as the Panic of 1907 and the Wall Street Crash of 1929. Livermore was known for his ability to read market trends and psychology, as well as his strict trading rules and discipline. He also wrote a book called How to Trade in Stocks, which is considered a classic among traders.
Peter Thiel is a co-founder of PayPal, Palantir Technologies, and Founders Fund, and the first outside investor in Facebook. He is also a prominent venture capitalist, hedge fund manager, and author of Zero to One: Notes on Startups, or How to Build the Future. Thiel has a net worth of $6.7 billion and is known for his contrarian and visionary approach to investing. He looks for companies that have the potential to create new markets or monopolies, rather than compete in existing ones. He also believes in the importance of innovation and technology as drivers of economic growth and social progress.
Ray Dalio is the founder of Bridgewater Associates, the world’s largest hedge fund with over $150 billion in assets under management. Dalio is known for his macroeconomic and systematic approach to investing, which relies on computer models and algorithms to analyze market trends and risks. He also developed the concept of the “economic machine”, which is a framework for understanding how the economy works and how to navigate different market cycles. Dalio is also the author of Principles: Life and Work, which outlines his personal and professional philosophy.
Carl Icahn is one of the most influential and feared activist investors in the world, as he has a reputation for shaking up the management and strategy of underperforming companies. He is the chairman of Icahn Enterprises, a diversified holding company that owns stakes in various industries, such as energy, automotive, gaming, railcar, mining, and pharmaceuticals. Icahn has a net worth of $16.6 billion and is known for his aggressive and confrontational style of investing. He often uses his large shareholdings to pressure companies to make changes that would increase shareholder value, such as spin-offs, buybacks, dividends, mergers, or asset sales.
In conclusion, The world’s most famous investors have achieved remarkable success in the financial markets by applying different strategies and philosophies. However, some common themes that emerge from their stories are the importance of discipline, patience, research, diversification, risk management, and innovation. By learning from their experiences and insights, aspiring investors can improve their own skills and performance in the long run. Investing is not a one-size-fits-all endeavor, but rather a personal and dynamic journey that requires constant learning and adaptation.
Frequently Asked Questions (F&Qs) The World’s 11 Famous Investors
Who is the father of investment?
Benjamin Graham is often referred to as the “father of value investing.” He was a British-born American economist and professor of finance at Columbia Business School. He is best known for his books “Security Analysis” (1934) and “The Intelligent Investor” (1949), which are considered to be two of the most important works on investment ever written.
Who is the youngest investor in history?
Alex Banayan became a venture capitalist at the age of 19. He started his career as an intern at Alsop Louie Partners, a venture capital firm in Silicon Valley. After his internship, he was offered a full-time position and became the youngest venture capitalist in history.
Who is the richest person in investing?
Simons is the founder of Renaissance Technologies, a quantitative hedge fund. As of March 8, 2023, Simons has an estimated net worth of $28.6 billion. Simons is known for his use of mathematical models to identify investment opportunities.
The World’s 11 Famous Investors