The most successful investors and their strategies

Cannabis gold rush: how to invest without risk

One of the practical and effective ways to increase status is to invest in a well-chosen profitable business, project or assets. The best investors of the past and present use certain rules: they allow them to be successful and earn.

Today we will consider the rating of investors who have already made their mark in the history of the financial world or who still continue to amaze inexperienced beginners with unique achievements.

TOP investors: legends of the investment world

The best investors are not just good money managers. They have inspired and continue to inspire millions of people who are just embarking on the investment journey. Consider the most famous investors of the past, because it was they who most influenced the formation of the modern financial world and became a motivating example.

Warren Buffett – “visionary” and “oracle” of the world of finance

Buffett is one of the most successful investors among active financiers. Today, it is worth more than $100 billion. Buffett first bought a stock at age 11, and since then his investment success has only multiplied. Warren’s strategy is to pick companies that the market undervalues. But before making a decision on cooperation, thoroughly study its potential. Buffett is sure that it is impossible to fully predict the behavior of the market, so he must invest in those areas with the workings of which he is not only familiar, but also deeply understands.

The world’s richest investors don’t always live like nouveau riche who don’t know the value of money. Warren doesn’t overspend, despite his enormous fortune and the ability to buy just about anything. He lives modestly in an old house, bought back in 1957, and promises to donate almost his entire fortune to charity after his death.

John Bogle is a leader in low cost index investing

Bogle is credited with being the first investor to adopt a broadly diversified portfolio strategy of index funds that must be held for the long term. At the same time, he abandoned individual stock selection. It was Bogle who founded the Vanguard Group in 1974, which created the first Vanguard 500 index fund. At the time of the investor’s death, his company’s assets exceeded $5 trillion, while personal funds hovered around $100 million. .

Bogle wrote the legendary bestseller Common Sense Mutual Funds. New imperatives of a reasonable investor”. And his thesis, “The Economic Role of the Investment Company,” was so fundamental that it helped change the approach to investing.

Bill Gross – Founder of Pimco Investment Corporation

The most famous investors in the world made money not only with classic investments. Rumor has it that Gross won his first big money while playing cards in Las Vegas. By early education, he has a bachelor’s degree in psychology. Five years later, the investor receives an MBA from the UCLA School of Business and establishes his investment company, Pimco.

Gross’s personal fortune is estimated at $1.5 billion. In his strategy, the investor focuses on diversification, as well as a thorough study of the object chosen for investment. According to their rules, you must not succumb to emotions, especially fear and greed.

Benjamin Graham is a master of safe investing

A well-known investor has always been guided by the principle that money should be invested only if the investment object is worth more than it is currently being valued. Graham advocated safe investments, so he always used common sense. In some cases, even too much.

Graham’s main investments were companies with good cash flow, above-average profitability and little debt. He was considered a fairly experienced investor and deeply understood the reasons, that is, he saw all the weaknesses of a potential investment object. But at the same time, he urged not to mix speculation and investment, making a thorough analysis of the facts, security and prospects.

Benjamin has written two books. They are still considered the standard in the investment world today: “Reasonable Investor”, “Security Analysis”. If you want to be included in the list of “the best investors in the world”, start by studying the classic literature.

Peter Lynch – The Greatest Investor of the 80s

Lynch served as a fund manager for Fidelity Magellan for approximately 13 years. During this time, the fund’s assets increased from $18 million to $14 billion. His strategy is chameleon-like, which means constantly adapting to a particular asset and market. When necessary, he always changed his strategy and achieved success. But before investing, Lynch thoroughly studied the asset and invested in only one that was 100% clear to him.

These are the fundamental principles of Peter Lynch:

  • focus less on forecasts;
  • don’t invest in companies that are growing too fast;
  • invest in shares of companies with an extremely low price-earnings ratio.

George Soros is an expert in understanding the nuances of economic trends.

One of the largest foreign investors. He is the founder of the hedge fund Quantum Fund. Running it for nearly two decades, it provided a 30% annual return. He became famous in the 90s of the last century, when he won around a billion dollars betting against the Bank of England.

Bill Miller – Benefits Management Specialist

Miller is one of the best investors in the world. He achieved great success as a portfolio manager at Legg Mason Capital Management, posting the longest “winning streak” in mutual fund history. Bill believes that stocks trading at a discount to intrinsic value are often undervalued. It is these securities that it selects on the market and analyzes using a special model of discounted cash flows.

Bill is sure that 100% of the information about any company is just its past, but 100% of the value of the shares depends on the future.

John Templeton – Buy low, sell high

Templeton was a risky investor. He chose such investment objects that others rejected. At the same time, he never took shares for more than $100. The investor’s most successful first investment in 1939 was the purchase of securities in more than one hundred companies. Many of them were on the verge of bankruptcy, and Templeton bought them with borrowed money. He paid less than a dollar for each of the shares. As a result, the investor sold almost all but four of the companies, earning an impressive profit.

He was guided by such principles throughout his career: he chose risky companies, invested money and received millions in profit. Some called him a lucky speculator. Probably out of envy.

Philip Fisher – buy long

Fisher was one of the few investors in the world whose main investment strategy remains a simple principle: “buy and hold.” He often bought stocks that he hadn’t sold for a long time. In his opinion, it is enough to choose a few reliable companies with future growth potential. That is why he did not welcome the excessive diversification of the investment portfolio.

Fisher was sure that it was necessary to sell shares when the company was in trouble.

Prince Al-Waleed – investor and businessman

He is often compared to Warren Buffett. But Al-Waleed lives in Saudi Arabia. The prince is attracted to investments in fast-growing technology companies that are characterized by a high level of risk. But, in addition to this, in the area of ​​​​his interests are banking, retail, petrochemicals, entertainment and transportation. Today, the businessman’s fortune exceeds 20,000 million dollars.

Ray Dalio is one of the best and most successful investors in the world.

Today, Dalio is considered the most effective hedge fund manager in the world. In this regard, he bypasses even Warren Buffett. Bridgewater Associates, which Ray manages, is valued at more than $160 billion and is the world’s largest hedge fund.

Dalio has an original nickname – “the strangest duck”. He got it because of his unique management style. All company employees are motivated and the desire to always be at the forefront is constantly fostered. And Dalio’s own strategy is to make numerous bets that don’t match. That is, one rate does not depend on the other, nor does it affect it. We can say that the diversification of the portfolio is at a high level.

Carl Icahn is a tough investor with serious intentions

The wealthiest investors don’t always make their fortunes the way the companies they invest in expect. Icahn has shown himself to be an activist, buying up mismanaged businesses and radically changing course. As a result, such assets turn a profit in no time, as Carl always manages to clean up. If the company’s strategy can be corrected, it is saved in the same format. Otherwise, the company is divided into parts and sold.

Icahn is one of the best investors in the world. His reputation is so strong that rumors of his acquisition of any company are enough, and his shares will be immediately redeemed.

Vagit Alekperov is an investor with oil roots

Alekperov is one of the leading investors in Russia. His fortune is estimated at more than $25 billion. Today, the Russian owns about 30% of Lukoil shares, of which he received almost $700 million in dividends in 2018.

Do you still want to be among the most successful investors in the world? So start acting today, but according to strictly defined rules. And you should not neglect training, because this is the case when the profit exceeds the costs incurred.