Carl Icahn is as tough as investors come, and this one-time Princeton philosophy student is known as one of the original corporate raiders of the 1980s. These investors used techniques such as greenmail (asking a company to buy back its stock from the investor at a high price in exchange for the investor leaving the company alone) to wring profits from companies. While Icahn has eschewed such techniques for many years, he’s been no less active in buying up companies, selling off divisions and forcing the sale of other companies. He’s been one of the most successful activist investors on the planet and is known for his hard negotiating style. Another characteristic that famous investors share is their focus on and mastery of one specific approach to investing. Cathie Wood is the founder, CEO, and chief investment officer of Ark Invest, an investment management company that establishes and actively manages a portfolio of ETFs.
Platforms Where You Can Track These Investment Gurus
During the Great Depression, he famously bought 100 shares of each company listed on the New York Stock Exchange that traded for less than $1. He founded his flagship mutual fund, the Templeton Growth Fund (TEPL.X +0.44%), in 1954 and produced annualized returns exceeding 15% over 38 years. He also pioneered international investing, having established some of the largest and most successful cross-border investment funds. He eventually sold his firm, Templeton Funds, to the Franklin Group, which is now Franklin Resources (BEN -0.79%).
The Fidelity Magellan Fund outperformed the S&P 500 in 11 years of his 13-year tenure, producing an average annual return of 29%. Buffett’s investing approach has produced awe-inspiring investment returns over many years. Since 1965, Berkshire Hathaway has produced an average annual return of 20% — almost double the performance of the S&P 500 during the same period. To put that outperformance into perspective, the stock could fall 99% and still come out ahead of the broader market. He invented the concept of value investing in the 1920s — an approach that prioritizes buying stocks priced below their intrinsic values.
- He was also the lead portfolio manager for George Soros’ Quantum Fund from 1988 through 2000.
- Inflation erodes purchasing power, while economic cycles create market volatility.
- Starting with a hostile takeover of the airline TWA in 1985, Icahn developed a reputation for forcing sweeping changes at underperforming companies.
Passively Managed Index Funds Types of Investments What They Are?
Contrarian investing, which Templeton mastered, means deliberately going against prevailing market trends. While most investors follow the crowd—buying when markets are rising and selling when they’re falling—contrarians do the opposite. They look for assets everyone else avoids, believing that markets tend to overreact in both directions.
More Predictable Returns
He leverages SPACs as a means to quickly bring famous investors these innovative companies to the public market, providing them with the capital needed to scale their operations. Dalio’s famed “All-Weather Portfolio” strategy is designed to perform well across various economic conditions (inflation, deflation, rising, and falling economic growth). It’s based on the idea of balancing the portfolio to reduce risk and volatility without sacrificing returns. Kathy Wood, the founder and CEO of ARK Invest, has become a symbol of innovation in the investment world.
Simons’s strategy involves the use of quantitative analysis to make investment decisions. This method relies on mathematical models and algorithms to predict market movements and identify profitable trading opportunities, rather than traditional fundamental or technical analysis. Palihapitiya’s strategy is about identifying and investing in companies that have the potential to disrupt industries and bring about significant technological and social advancements.
🔟 Carl Icahn
She also chairs the Pax Ellevate Global Women’s Leadership Fund (PXWEX -0.86%), a mutual fund focused on companies that rate highly for advancing women. He more than doubled the returns of the S&P 500 when he helmed Vanguard’s Windsor Fund for the 31 years between 1964 and 1995. He favored stocks with low price-to-earnings (P/E) ratios and dividend payers, as well.
Anyone can have a down year, which has been the case for many famous investors in the past. Graham’s legacy is the formative role he played in shaping Warren Buffett’s investing strategy and his ascent as a leading value investor. Referred to as the “Oracle of Omaha,” Warren Buffett (b. 1930) is viewed as one of the most successful investors in history. Following the principles set out by Benjamin Graham, he has amassed a multibillion-dollar fortune mainly through buying stocks and companies through Berkshire Hathaway. In 1973, Soros founded the hedge fund company Soros Fund Management, which eventually evolved into the well-known and respected Quantum Fund. For almost three decades, he ran this aggressive and successful hedge fund, reportedly racking up returns of more than an average annual return of 31%.
In today’s digital age, keeping up with the investment strategies and insights of leading financial gurus has never been easier. A plethora of platforms and websites offer real-time access to their trades, market predictions, and invaluable wisdom. His investment philosophy is characterized by patience, discipline, and the importance of returning capital to investors in the absence of attractive opportunities.
From Warren Buffett, who’s known as the “Oracle of Omaha,” to Ken Fisher, these investors have made significant wealth from the stock market, each following a unique approach. Keep in mind, there may be other investors with a higher net worth as of the posting of this article but regardless, these are 10 investors to be aware of and gain perspective of their investing styles. Also keep in mind, the net worth numbers below are an estimated snapshot from 2024. While some, like Jesse Livermore, serve as cautionary tales about the dangers of speculating, others, like Warren Buffett, show how methodical, long-term investing can build sustainable wealth. Most importantly, these legends show that successful investing isn’t about finding a secret formula—it’s about finding an approach that matches your temperament and sticking to it through market cycles.
Warren Buffett, often referred to as the “Oracle of Omaha,” stands as one of history’s most accomplished investors. George Soros, the mastermind behind Soros Fund Management LLC, possessed an uncanny ability to translate broad economic trends into astute, highly leveraged plays in bonds and currencies. What truly set Lynch apart were his remarkable 11 out of 13 years of outperforming the S&P 500 Index benchmark, delivering an impressive annual average return of 29%. Peter Lynch, at the helm of the Fidelity Magellan Fund from 1977 to 1990, oversaw an astonishing growth in the fund’s assets, soaring from $18 million to a staggering $14 billion. It’s this unique blend of wins and losses that laid the foundation for trading ideas still influential in today’s markets.
Not only have they amassed tremendous wealth for themselves, but they’ve also paved the way for millions of others to achieve similar financial success. His rise to fame began in 1965, when he acquired struggling textile maker Berkshire Hathaway (BRK.A +1.25%)(BRK.B +1.25%) and used it as a vehicle to build a vast investment empire. Today, Berkshire is a global conglomerate with stakes in iconic companies like GEICO, Dairy Queen, Coca-Cola (KO +0.71%), and Apple (AAPL -0.20%). Often described as a chameleon, Lynch adapted to whatever investment style worked at the time. But when it came to picking specific stocks, he stuck to what he knew or could more easily understand. Peter Lynch (b. 1944) managed the Fidelity Magellan Fund from 1977 to 1990, during which the fund’s assets grew from $18 million to $14 billion.
Top 10 Best Investors of All Time
His investment approach is rooted in identifying distressed securities that are undervalued, focusing on capital preservation and superior risk-adjusted returns. Howard Marks, co-founder of Oaktree Capital Management, is renowned for his insightful letters to investors, which offer deep dives into investment philosophy, market understanding, and risk management. However, one of the keys to success for the most famous investors is that they have a long-term mindset.
The use of artificial intelligence (AI) and machine learning has further revolutionized investment strategies. AI-powered robo-advisors provide automated portfolio management, making investing more accessible to beginners. Additionally, big data analytics helps investors make informed decisions based on real-time market trends. She is recognized for her early bets on Tesla (TSLA) and bitcoin, contributing to her fame and the growth of ARK’s assets under management.
- When managing money on his own from 1962 to 1975, Munger’s growth rate was also 19.8%.
- Their groundbreaking approaches have stood the test of time, offering lessons that continue to inspire both seasoned and aspiring investors.
- A plethora of platforms and websites offer real-time access to their trades, market predictions, and invaluable wisdom.
- Bill uses his influence to help these companies become more successful and profitable.
- Value investing, the approach Graham pioneered, is like shopping for high-quality items at discount prices.
At Berkshire’s annual meetings, Munger doled out two kinds of responses to shareholders’ questions. First, Munger might offer up a piece of acerbic wisdom on how to succeed in the world. For example, he might suggest that you’re more likely to be happy by setting your expectations low or that you’ll sabotage yourself if you are envious of others and pity yourself. Second, he might offer a terse “no comment” following a thorough response from Buffett to a shareholder question.