Investing as an activity arose at the end of the 19th century, and entered the active stage in the first half of the 20th century. For over 70 years, a successful investor is an example of the American dream and proof that one can āget rich with the mindā.
In the 21st century, talented millionaire investors are increasingly appearing outside the United States: in Europe, Asia and Russia..
The best investors in the world
The United States of America is the birthplace of most of the wealthy who made their fortunes on investment. They are peculiar stars of the industry and classic self-made businessmen who earned money starting from the bottom, and did not enter the market with big capital.
1. Warren Buffett
Buffett is the most famous investor and one of the richest people in the world. He remains true to the investment philosophy of the mid-20th century (value investment). Considers companies fundamentally and invests in stocks that the market underestimates.
Buffett invests where he understands well and believes that it is impossible to predict market behavior. He perceives the purchase of shares, not as a purchase of securities, but as a purchase of a share in a business.
Warren also loves to save. Every morning he has breakfast at Mcdonaldās and lives in a house that he acquired back in 1957. Since 2011, Buffett has been on the Forbes list of the most influential people on the planet..
You do not need to be a rocket scientist. Investing is not an area where a person with IQ 160 will achieve greater success than a person with IQ 130.
2. George Soros
The legendary American of Hungarian descent is known as a skilled forecaster of currency crises. He became famous after the āblack environmentā ā September 16, 1992. Then the pound fell sharply against the German mark, and Soros played on it and received more than $ 1 billion in a day.
He says that he earns from his theory of reflexivity. It is based on market expectations, which change under the consistent work of the media (custom articles or information attacks). It inflates financial bubbles and specs.
Soros is often criticized. Many accuse him of getting insider information, lobbying and launching financial crises for the purpose of profit..
I did not accept the rules suggested by others. If I did, I would no longer live.
3. Peter Lynch
Peter Lynch is one of the best investors of the 1980s. His Fidelity Magellan Fund had several distinctive principles:
- Do not work with companies that are growing too fast.
- Invest in stocks with extremely low (to historical lows) price-earnings ratios (P / E) ā undervalued stocks.
- Do not focus on forecasts.
Lynch recommends that you do not follow the forecasts of Wall Street analysts, but rather understand the companyās business and study the industry in which it operates. He believes that everyone has enough intelligence to start investing in the stock market, but not everyone has enough endurance. He advises those who are prone to panic to invest in mutual funds (mutual funds).
In 1989, Peter Lynch described his ideas in the book āStrategy and tactics of an individual investorā. His investment philosophy has gained many followers..
In every industry and every region, a supervisor can find great, growing companies long before they are discovered by professionals..
4. John Templeton
Sir John Templeton is a big figure in the global financial market of the 20th century. This is another antagonist investor who has built a fortune to counter trends. Templeton was the first in the world to make money with the help of diversified funds focused on international trade. His Templeton Growth invested in the Japanese economy.
In 1939, Templeton bought shares from every company that offered them for less than $ 1 apiece. Four years later, this venture made a profit. In 1954, he founded the Templeton Growth fund, which for 45 years of operation showed an average return of 14.5% per annum ā every $ 10,000 turned into $ 2 million for this period.
The period of maximum pessimism is the best time to buy, the period of maximum optimism is for sale.
5. John Bogle
Bogle is the founder of the first and most reputable index fund on the market ā Vanguard 500. More than 40 years ago, his idea was apprehensively received, but quickly proved its worth. Vanguard Group currently manages assets worth more than $ 2.5 trillion..
Boglaās principle of success is this: asset growth is limited by overall market growth and costs. It is impossible to get around the market, so you need to cut costs.
Bogle advises choosing funds with low costs, is wary of paid tips and not overestimate past performance.
Do not look for a needle in a haystack. Just buy the whole haystack (about diversification).
6. Karl Aikan
The heyday of Aykanās investor career came in the 1980s. He made a fortune on a greenmail (corporate blackmail). Aikan bought back controlling stakes in the companies and was a member of the board of directors, and afterwards insisted that his share be bought at a higher price. In case of failure, he threatened to bring down the business or simply interfered with normal work. For this he was nicknamed the āexecutioner of companiesā.
Hewlett-Packard shares are sinking, profits are falling, CEOs are fired ā¦ Great, buying!
7. Sam Zell
72-year-old Sam Zell proves that different strategies work in business. The main thing is to understand what you are doing and follow the plan. Unlike Buffett, Zell does not invest in ready-made stable projects, but searches for low-cost crisis companies and raises them with competent management. He reanimated those projects that other investors did not pay any attention to..
Zell has three principles:
- Buy something that is not in demand or is on the verge of bankruptcy.
- Make sure the company has the potential.
- Organize a deal to reduce tax costs, but stay within the law.
The key to my success is that I always first of all evaluate how many percent the current potential is not realized..
8. Bill Gross
It is believed that the founder of the giant investment company PIMCO earned his first capital from playing blackjack in Las Vegas. But success in business was not ensured by playing cards: first, Gross studied at Duke University, then received an MBA from the University of California, and since 1971, he worked as an analyst in Pacific Mutual Life Insurance. In the same year, he created the company PIMCO, which he managed until 2014..
Gross is a proponent of diversification and a satisfying investment. That is, investments, analysis, work on mistakes and success should bring both financial and ethical pleasure.
Its principles are a long-term forecast (study of news, comparison of indicators, season accounting) and control over emotions. Gross believes that the main enemies of the investor are greed and fear.
I was always inclined to pay attention to those numbers that the market does not notice..
9. Bill Miller
Bill Miller is a portfolio manager with one of the longest stories of profitable management. For 15 years in a row ā in 1991-2005 ā the total profitability of his fund overtook the S index&P 500.
Miller is looking for companies with a competitive advantage whose shares are sold at prices below their true value. Miller analyzes this value using a special discounted cash flow model..
I often remind our analysts that 100% of the information you have about the company is the past, and 100% of the value of the stock depends on the future..
10. Jeffrey Gundlach
Gundlach is a man with vivid mathematical abilities that helped him build a vibrant career at the TCW Total Return Bond Fund. He applied for a job at this company without any education or experience. But he defeated everyone at the interview and became one of the best employees.
In 2009, Gundlach was unexpectedly fired from TCW. The businessman did not give up and made his DoubleLine Capital fund, which is several times greater than Gundlachās previous place of work in terms of assets.
In the investment world, Jeffrey Gundlach is an example of courage and composure, especially when you need to go against the opinion of the crowd or part with the āgood oldā assets if they ceased to be profitable.
You should be able to leave your old friends (about promotions).
The best investors of Russia
The specifics of the Russian financial world is such that most major investors are not āpureā investors. Initially, their condition was formed by a share in large industrial enterprises. It is difficult to put them on a par with investors from the list above: after all, owning and investing are two different things. Therefore, for the review we took 5 Russian billionaires, among the sources of income of which Forbes indicates investments.
1. Vagit Alekperov
Alekperov built his financial empire, starting as a high manager at oil and gas enterprises in the 1990s. In 1990 ā 1992 he was deputy minister of the oil and gas industry of the USSR. After privatization in 1993, Lukoil became the source of its wealth. In 2018, Alekperov received more than $ 680 million in dividends from the company.
I grew up in the oil field ā¦ In our yard, except for throwing a rope and riding a [oil] rocking chair, there was no other entertainment in the 50s.
2. Gennady Timchenko
Timchenko managed to become a millionaire back in the 90s, although at that time he was not a public figure. The basis of the businessmanās capital is Sibur, Novatek, Stroytransgaz, Stroytransneftegaz, Transoil. Timchenko manages SKA hockey club and invests in agricultural development in the Krasnodar Territory.
From myself, I can clearly and definitely say: if necessary, tomorrow I will transfer everything to the state. Or to charity. Just to benefit.
3. Victor Vekselberg
Victor Vekselberg raised his fortune by investing in aluminum and oil, and later began to invest in foreign assets. These are the Swiss companies Sulzer, Oerlikon, Schmolz + Bickenbach. Now the billionaire is limited in freedom of doing business due to US sanctions.
Wealth is a criterion of a personās social success, a reflection of his abilities, partly luck.
4. Mikhail Prokhorov
Prokhorov went from a cooperative in the 1980s to one of the richest people in Russia in 15-20 years. The main role in this was played by the alliance with another billionaire Vladimir Potanin ā partners actively privatized industrial enterprises in the 1990s.
In 2007, they parted, and Prokhorov became the owner of Onexim. In the future, the billionaire was actively involved in social activities, bought a basketball team in the United States, invested in technology, but in 2018 sold most of these assets.
In business, it should not be easy. Should it be hard, just businessmen and should take on an elevated one? risk and love him.
5. Dmitry Rybolovlev
Dmitry Rybolovlev became a billionaire due to the privatization of Uralkali, one of the largest producers of mineral fertilizers in Russia. The businessmanās current capital was earned after selling the company to Suleiman Kerimov for $ 5 billion. Since 2011, Rybolovlev has been living in the Principality of Monaco, owns a local football club, invests in works of art and buys elite houses in different places on the planet.
Big business is a state affair. Especially if this business is in private hands.
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