The financial arena is full of leaders whose achievements are a benchmark for many. From the origins of business and investing, many have strived for success, but the results have varied. While it is not easy for the average person to copy the path of investment icons, we can still use their experiences as an aid in our endeavors.
1. Bill Gross: Iconic Investor[]
Bill Gross was 75 years old in 2019. He managed assets worth $1.75 trillion dollars. His educational journey began with a scholarship from Duke University, where he completed his studies in 1966, earning a bachelor's degree in psychology. Interesting fact: Gross formed his initial capital by winning blackjack at a Las Vegas casino.
Education and Career
After graduating with a master's degree in business administration from the University of California in 1971, he began working as an analyst for Pacific Mutual Life Insurance. In the following years, he earned his financial analyst (CFA) qualification. He was among the founders and key managers of investment firm PIMCO until September 27, 2014. His fortune is estimated at $2.3 billion.
Bill Gross Investment Strategy. Bill Gross defends the idea of investing in the manufacturing sector as opposed to companies that are incapable of self-growth. He is convinced that financial investments should generate pride and profit. Gross advocates a diverse investment portfolio and emphasizes the need for comprehensive market analysis, recommending that a certain reserve be held in liquid assets.
2. Peter Lynch - the manager of billions[]
At the age of 19, future famous investor Peter Lynch invested in an airline, successfully multiplying his funds. This was the start of his career at Fidelity, where he oversaw $2.4 trillion in assets. His first investment helped him finance his studies at a prestigious business school.
Peter Lynch's career at Fidelity
In the late 60s, Peter Lynch became part of the Fidelity Investments team. After five years, he was entrusted with the management of research in the company. In 1977, he became the head of the Magellan fund. In the 13 years under his leadership, the fund showed impressive growth, with average annual returns of 29.2% and total assets under management growing from a paltry 18 million to a staggering $14 billion, making Magellan the most powerful player in the stock market.
Famous Investor
Peter Lynch, at the age of 46, decided to retire from business and devote himself to philanthropy. His approach to investing can be described by the phrase: “Invest in what you understand”.
3. Warren Buffett[]
Age: 89 (as of 2019). Managed assets: $702.1 billion Warren Buffett, the head of Berkshire Hathaway, is one of the world's most famous and influential investors. As of March 2018, his fortune was estimated at $100.1 billion.
Warren Buffett: Investment Guru
Warren Buffett, who tops the rankings of the richest people on the planet and has the second largest fortune in the United States, is known as “The Oracle”. His generosity in philanthropy is unrivaled in history. His career as an investor began in his youth - at the age of 11, he and his sister Doris invested in Cities Service shares, paying $38.25 each.
The change in stock value and Warren Buffett's first steps
The value of the stock first dropped to $27, then rose to $40, allowing Buffett to earn $5 on each. His initial capital of $10,000 was earned from an ingenious idea of placing slot machines in barber shops. In 1965, Buffett became a major shareholder in textile company Berkshire Hathaway, which turned into a major investment vehicle for him.
Buffett's investing
Warren Buffett expanded his investment portfolio by acquiring the insurance company National Indemnity for $8.6 million and GEICO for $17 million in 1976. During the 1973 market downturn, he invested $11 million in The Washington Post.
In 2018, his firm, Berkshire Hathaway, realized significant deals including buying $358 million worth of Teva Pharmaceutical Industries stock and 31.2 million shares of Apple stock.
Investment changes
The investment firm significantly reduced its stake in IBM to 2 million shares, moving away from its previous 37 million. Buffett's underlings always pay attention to the financial health and key metrics of a business before investing.
4. Jack Bogle is a financial guru[]
Life span: 08.05.1929 - 16.01.2019Managed assets: $5.1 trillionFounder: The Vanguard Group
John C. Bogle: Investment Pioneer. American businessman, John Bogle, founded The Vanguard Group, a leading investment firm. His book “Common Sense Mutual Funds” was a hit. Bogle studied at Blair Academy through a scholarship and then graduated from Princeton and took courses at the University of Pennsylvania.
Bogle's impact on the investment world
John Bogle made a significant contribution to the financial sector by outlining the fundamentals of mutual funds in his research paper. His ideas dramatically changed investment strategies. In 1974, he founded The Vanguard Group, which under him grew into a leading asset management giant. In his work, Common Sense Investing in Mutual Funds, Bogle highlighted key principles for investors looking to invest in collective investments.
- Tips for Choosing Investment Funds
- Save on fees. Avoid funds with high management fees. Lower costs contribute to better returns.
- Beware of hidden fees. Be vigilant: specialist advice can incur hidden charges.
- Don't chase past performance. A fund's past performance is no guarantee of future success.
- Research the fund's history. Analyze historical data to understand the fund's risks and stability.
- Don't follow the “Stars”. Managers with glittering reputations don't always deliver the best results.
- Avoid huge funds. Large funds cannot always adapt effectively to market changes.
- Don't spread yourself thin. Too many funds in a portfolio makes it difficult to manage and control.
5. Bill Miller[]
Age: 69 in 2019 Managed assets: $752.3 billion Former role: Chief strategist at Legg Mason Capital Management. Bill Miller is a household name in the world of investing. Under his watch, the fund enjoyed record beating periods, outperforming the S&P 500 for fifteen years from 1991 to 2005. His method is long-term holding of the fund's assets.
B. Miller. Bill Miller advocates an investment approach where stocks with growth potential, selling below their real value, are considered attractive to buy. This view differs from the classical understanding of value investing and can be confusing to orthodox investors.
Miller has proven the effectiveness of his method with the outstanding performance of his Legg Mason Value Trust over 15 years. This approach can be useful for private investors looking to improve their investment strategies.
6. Brief information about Hui Ka Yang[]
Professional path: The real estate corporation he founded, Evergrande, has grown into one of the largest in China. With his expertise in investment and management, Hui has been able to grow the company's assets to $275 billion by 2019.
Contribution to society: Hui is also known for his philanthropic endeavors. In 2011, he celebrated a large donation of $62 million, earning him a reputation as one of the country's most responsive philanthropists.Personal details: Hui turned 60 years old in 2019.
Hui Ka Yan: Chinese Tycoon[]
Chinese businessman Hui Ka Yan is known for his real estate assets, including in Guangdong province, where his company is a leader. He also owns a soccer team and a movie company. The rapid increase in the value of his business made him the richest man in China in 2017, when the value of his company's shares more than quadrupled.
7. Benjamin Graham[]
Life Period: 1894-1976Foundation:Graham-Newman Company American economist B. Graham, recognized as the forerunner of the concept of asset-based investing, began his career as a courier at Newburger, Henderson & Loeb, earning $12 weekly.
Benjamin Graham's career[]
While starting out as a courier, Graham also tracked the value of securities. By 1919, he was earning $600,000. In 1926, he and Newman formed an investment firm. Their firm hired Buffett three decades later. While a partner at Graham-Newman from 1928 to 1956, Benjamin also taught at Columbia University.
Investing vs. Speculation. Benjamin Graham advocated the need for a clear distinction between investment strategies and speculative actions. In his view, a true investment should always be backed by a deep study of the data, an assessment of stability and profit potential. When there is no such analysis, it is no longer investing, but risk. Graham advised investors to analyze the economic situation of businesses first.
The investment appeal of undervalued stocks[]
When the market value of a stock is lower than its real value, it creates a “safety cushion” for investors. Carl Icahn, a well-known American investor and founder of Icahn Enterprises, manages $33.3 billion in assets. At the age of 83 (as of 2019), his fortune was valued at $24.5 billion.
8. Icahn's career path[]
Icahn started on Wall Street as an apprentice at Dreyfus & Co. in 1961. A few years later he founded his own brokerage agency. In the '80s, his fortune grew to billions thanks to investments in high-risk bonds offered by M. Milken.
Icahn is known as a pioneer of corporate pressure on company management, although he himself prefers to call himself a shareholder rights activist.
Carl Icahn started his hedge fund in 2004, but by 2011 had withdrawn assets from investors, going private. Donald Trump, when elected to the presidency, offered him a position as a consultant on business regulatory reform in late 2016. Charles Munger, at age 95 in 2019, managed $702.1 billion in assets while serving as vice chairman at Berkshire Hathaway.
Renowned Lawyer and Economist[]
A US-based lawyer and economist, also a successful investor, held $1.3 billion in net worth according to Forbes in 2015. His investment strategy involved buying stocks at prices below their real value. From 1962 through 1975, his partnership generated an annualized return of 19.8%, far outperforming the overall market.
Merger and Munger Management[]
In 1976, there was a merger between Berkshire and Blue Chip Stamps. Following this, Charles Munger became vice chairman of the board of directors. He continually emphasized the importance of investing in quality companies and the justification of paying adequate value for them. Munger remains in his position at Berkshire Hathaway to this day.
9. Geraldine Weiss[]
Weiss, a renowned financier, became the foremother of women investors. At the age of 40, she launched the author's Financial Digest (1966), which became her professional credo for 37 years until her retirement in 2003. Her contribution to investing is still recognized today.
Weiss' Innovative Trading Techniques[]
Weiss made a significant contribution to the world of trading by developing two methods of securities trading that have become world renowned. Her approach emphasizing stock dividends stands out among the competition. This system has shown superior profit results, holding up even during periods of economic downturns.