Famous investors differ widely in their strategies as well as philosophies when it comes to trading; some came up with new and innovative ways to analyze their investments, while others picked securities almost entirely by instinct. However, these investors don’t differ in their ability to consistently beat the market.
Let’s start with Ben Graham. He excelled as an investment manager as well as a financial educator. Graham is the author of two investment classics of unparalleled importance. Besides, he is recognized as the father of two fundamental investment disciplines – security analysis and value investing.
Ben Graham’s value investing cornerstone is that any investment should be worth substantially more than an investor has to pay for it. One of the most well-known investors believed in fundamental analysis and sought out companies with robust balance sheets or those with little debt, above-average profit margins, and abundant cash flow.
Now, we can move on to one of the past century’s top contrarians, John Templeton. He bought low during the Depression, and sold high during the Internet boom. John Templeton created some of the world’s most successful companies’ international investment funds. More than 25 years ago, more precisely in 1992, he sold his Templeton funds to the Frankin Group. More than 20 years ago, Money Magazine called him “arguably the greatest global stock picker of the century.”
When it comes to the most famous investors in the world it is hard not to mention Peter Lynch. He was in charge of the Fidelity Magellan Fund from 1977 to 1990, during which the fund’s assets grew from $18 million to $14 billion. We should also mention that Lynch reportedly beat the S&P 500 Index benchmark in 11 of those 13 years.
He adapted to whatever investment cycle worked at the time. Nonetheless, when it came to picking specific stocks, Peter Lynch stuck to what he knew and/or could easily understand.
George Soros is one of the most well-known investors. He was a master at translating broad-brush economic trends into highly averaged, killer plays in bonds and currencies. In the 1970s, George Soros founded the hedge fund company of Soros Fund Management. The fund by George Soros eventually evolved into the well-known and respected Quantum Fund. For a long period of time, Soros ran this aggressive and successful hedge fund, reportedly racking up returns in excess of 30% per year.
Warren Buffett changed the world, as he is one of the most successful investors in history. The Oracle of Omaha amassed a multibillion-dollar fortune mainly through buying stocks as well as companies through Berkshire Hathaway. Buffett’s investing style of discipline, patience, as well as value, outperformed the market for decades.
We also have to mention John (Jack) Bogle. In 1975, Jack Bogle founded the Vanguard Group mutual fund company. Vanguard Group’s founder pioneered the no-load mutual fund and championed low-cost index investing for millions of investors. Bogle created and introduced the first index fund, Vanguard 500, in 1976. His investing philosophy advocates capturing market returns by investing in broad-based index mutual funds.