When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
The world’s greatest investors & who to follow in 2024
Who are the people that have consistently generated returns through the decades? And what sets them apart from the rest? Keep reading to learn about the greatest investors ever.
QUOTE
“Invest for the long haul. Don't get too greedy, and don't get too scared."
It’s not only fascinating to learn who the greatest investors of all time are but also to explore what makes them successful. From the value investing techniques of Warren Buffetts to Peter Lynch's novel approach to growth investing, each investor has something unique that you can learn from.
Big ideas
- The most successful investors in the world have been able to outperform the market repeatedly, but they did so with a wide range of investment strategies and philosophies.
- Successful investors often follow a disciplined, long-term approach to investing, which helps them to avoid impulsive decisions and ride out market fluctuations.
- Diversification and effective risk management are vital to achieving long-term success. Those who spread their investments across various asset classes and industries can better manage risk and avoid significant losses.
Six best investors of all time
The best investors of all time have accumulated vast fortunes due to their successful investing strategies.
The approaches and investing methods they implemented were diverse and unique. Some relied almost solely on their gut feelings when choosing stocks, while others developed novel and creative approaches to manage their portfolios. However, the ability to outperform the market continuously is something they all have in common.
Whether you're new to investing or already have some experience, there are important lessons you can learn from all of these financial wizards. However, you should know that these lessons serve as a starting point, so you will still need to devote time and effort to research and study to comprehend the stock market. It is important to note that despite the investors discussed in this article having accumulated a vast amount of fortune due to their successful strategies, investments may rise and fall, and your capital is at risk.
The approaches and investing methods they implemented were diverse and unique. Some relied almost solely on their gut feelings when choosing stocks, while others developed novel and creative approaches to manage their portfolios. However, the ability to outperform the market continuously is something they all have in common.
Whether you're new to investing or already have some experience, there are important lessons you can learn from all of these financial wizards. However, you should know that these lessons serve as a starting point, so you will still need to devote time and effort to research and study to comprehend the stock market. It is important to note that despite the investors discussed in this article having accumulated a vast amount of fortune due to their successful strategies, investments may rise and fall, and your capital is at risk.
Warren Buffet
A name you have very likely come across before! Warren Buffett is widely considered the greatest investor in the world. Born in 1930 in Omaha, Nebraska, Buffett began investing at a young age and became the chairman and CEO of Berkshire Hathaway, one of the world's largest and most successful investment firms.
Source: CNBCBuffett's investment philosophy emphasises the importance of value investing, focusing on undervalued companies with solid fundamental qualities. He also stresses the importance of holding investments for the long term rather than trying to time the market.
His strategy has generated outstanding returns over the years. Berkshire Hathaway generated an average annual return of 20% since 1965, which is about double the performance of the S&P 500.
His strategy has generated outstanding returns over the years. Berkshire Hathaway generated an average annual return of 20% since 1965, which is about double the performance of the S&P 500.
Source: Financial Planning Associates. Past performance doesn’t guarantee future results.The chart above shows the performance of Buffett's Berkshire Hathaway and the S&P 500 over the years. To put that in perspective, if you had put $10,000 into S&P 500 stocks thirty years ago, your account would be worth $210,791. On the other hand, a $10,000 investment in Buffett's holding company, Berkshire Hathaway, would be worth $652,264 in 2022.
George Soros
Soros is one of the greatest investors of all time, known for his success in currency trading and his hedge fund's impressive performance over the years. He is a master at turning broad-brush economic trends into highly leveraged, profitable bets in bonds and currencies.
Source: AxiosSoros is best known for his famous bet against the British pound in 1992 when he ‘broke the Bank of England’ and made more than $1 billion by shorting the currency. What is now known as "Black Wednesday" has become one of the most famous days in financial history and solidified Soros's reputation as a shrewd investor.
GBPUSD Weekly performance
Source: TradingView. Past performance doesn’t guarantee future results.The figure above shows the fall in the GBPUSD currency pair, from which Soros made $1 billion by shorting the British pound.
But Soros's success is more extensive than this one trade. Over the years, he has made a series of successful bets on a wide range of assets, including stocks, bonds, and currencies. He has also been an early investor in several tech companies, including Amazon and Google. His investment in Facebook has been particularly lucrative, with his stake in the company reportedly worth more than $1 billion.
But Soros's success is more extensive than this one trade. Over the years, he has made a series of successful bets on a wide range of assets, including stocks, bonds, and currencies. He has also been an early investor in several tech companies, including Amazon and Google. His investment in Facebook has been particularly lucrative, with his stake in the company reportedly worth more than $1 billion.
Peter Lynch
The legendary investor and former manager of the Fidelity Magellan Fund, one of the most successful mutual funds of all time. Lynch's investment strategy is based on in-depth research and a keen eye for spotting undervalued companies with strong growth potential. His approach to investing has made him one of the most successful investors in history.
Source: Fox BusinessUnder Lynch's leadership, the Magellan Fund became one of the most successful mutual funds ever, growing from $20 million in assets in 1977 to more than $14 billion when Lynch retired in 1990.
John “Jack” Bogle
John "Jack" Bogle was an American investor and founder of The Vanguard Group, one of the largest investment management firms in the world. Bogle is considered by many to be the godfather of index fund investing.
Source: KiplingerFor millions of investors, Bogle was a champion of no-load mutual funds and low-cost index investing. In 1976, Bogle developed and released the first index fund, called Vanguard 500, which involved investing in a diversified portfolio of stocks or other assets that mirrored the performance of the S&P 500. Bogle believed that index funds offered investors a low-cost and low-risk way to achieve long-term investment success.
John Neff
For over 30 years, John Neff managed funds for Wellington Management Co. He was a mutual fund manager and one of the most successful investors. One of the funds he oversaw was the Windsor Fund, which returned more than 13% annually over 30 years, compared to the S&P 500's 10% return during the same period.
Source: Getty ImagesThe 5 most famous value investors
The idea behind the value investing philosophy is simple; investors make enormous profits by buying assets currently trading at prices far below their intrinsic value.
DEFINITION
Intrinsic value is the true value of an asset, such as a stock or a company, based on its fundamental characteristics and future potential.
Stock prices don't always (and probably usually don’t) reflect the actual worth of a company. When a company's market capitalisation is lower than its intrinsic value, it opens up opportunities for value investors to buy in anticipation that it will someday return to its actual worth.
Value investors buy when the market price is below the intrinsic value of a stock and sell the stock when it is above. Value investors look to purchase shares of a company's stock at prices that are lower than the company's "intrinsic value" and then sell those shares when the market price rises to levels that exceed that value.
Disclaimer: Investors might not always make profit when buying assets currently trading below their intrinsic value.
Value investors buy when the market price is below the intrinsic value of a stock and sell the stock when it is above. Value investors look to purchase shares of a company's stock at prices that are lower than the company's "intrinsic value" and then sell those shares when the market price rises to levels that exceed that value.
Disclaimer: Investors might not always make profit when buying assets currently trading below their intrinsic value.
Here’s our list of the five most famous value investors:
1. Benjamin Graham
This is the man often dubbed the ‘father of value investing’. Graham developed a strategy that involved buying stocks at a discount to their intrinsic value and selling them when they reached their fair value. He was the most influential mentor to Warren Buffett.
He emphasised the importance of margin of safety, which means buying stocks at a significant discount to their intrinsic value to reduce risk. Graham also focused on diversification, investing in multiple undervalued stocks across different industries and sectors to mitigate risk.
He emphasised the importance of margin of safety, which means buying stocks at a significant discount to their intrinsic value to reduce risk. Graham also focused on diversification, investing in multiple undervalued stocks across different industries and sectors to mitigate risk.
QUOTE
"A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price."
As the mentor of Warren Buffett, Graham taught him the principles of value investing. Buffett has often credited Graham for shaping his investment philosophy and teaching him the value of patience and discipline in investing.
2. Charlie Munger
Munger is the business partner of Warren Buffett and the vice-chairman of Berkshire Hathaway. His investment approach, like Buffett, involves investing in high-quality companies with a margin of safety. He looks for companies with a sustainable competitive advantage and a strong management team, as well as a price significantly below the company's intrinsic value. Munger emphasises patience and waiting for the right investment opportunity to arise, and he is known for his ability to think long-term and disregard short-term market fluctuations. More recently, he has been a vocal opponent of Bitcoin and cryptocurrencies.
3. David Abrams
Abrams’ hedge fund has amassed more than ten billion dollars worth of assets under management (AUM) while spending very little on marketing and fundraising activities.
Abrams is the founder and CEO of Abrams Capital Management, established in 1999 and headquartered in Boston. The company takes an opportunity-driven, value-focused, and fundamental approach to its investments.
He has outperformed most fund managers throughout the fund's first 15 years by generating an annualised net return for investors of 15%. Abrams Capital Management was founded in 1999. The Abrams fund is unleveraged, which means that it does not make investments with money that has been borrowed (also known as leveraged funds), and it keeps a large amount of cash on hand.
Abrams is the founder and CEO of Abrams Capital Management, established in 1999 and headquartered in Boston. The company takes an opportunity-driven, value-focused, and fundamental approach to its investments.
He has outperformed most fund managers throughout the fund's first 15 years by generating an annualised net return for investors of 15%. Abrams Capital Management was founded in 1999. The Abrams fund is unleveraged, which means that it does not make investments with money that has been borrowed (also known as leveraged funds), and it keeps a large amount of cash on hand.
4. Joel Greenblatt
Greenblatt is the founder of Gotham Capital and the creator of "The Magic Formula," a strategy that involves buying undervalued companies with a high earnings yield and a high return on invested capital. Greenblatt's approach seeks to identify undervalued companies due to temporary market conditions, such as a short-term decline in earnings. He focuses on the long-term potential of these companies and often holds them for the long term to benefit from their growth potential.
5. Seth Klarman
Klarman is the founder of Baupost Group and is known for his value investing approach that emphasises margin of safety and long-term thinking. He looks for undervalued securities with a margin of safety, and he often invests in companies that are out of favour with the market. Klarman also stresses the importance of risk management and diversification, and he is known for his ability to find value in distressed assets and special situations.
Top 5 best investors to follow in 2024
It was a challenging year for investors, with both stocks and bonds falling in 2022. However, the track record of certain investors stood out amid the bear market.
They have contributed to the movement of the prices of illiquid assets, commodities, currencies, and securities, and they have influenced the behaviour and strategies of other market participants.
They have contributed to the movement of the prices of illiquid assets, commodities, currencies, and securities, and they have influenced the behaviour and strategies of other market participants.
- Warren Buffet. Warren Buffet is one of the best investors of all time and is one of the main ones you should consider following in the year ahead. We've discussed how Warren Buffet has consistently beat the market over the decades, and he always finds a way to pick the winning stock. It's why you should follow him in the year ahead.
- Thasunda Brown Duckett. By managing the $1.2 trillion Teachers Insurance and Annuity Association of America, Thasunda Brown Duckett significantly impacts the markets and the retirement circumstances of more than 5 million customers. She helped the organisation that provides retirement benefits and investment funds to nonprofit workers and their families pay out $6.4 billion to retirees in 2022 and increase those payments by 5%.
- Michael Burry. He is a well-known investor who rose to fame after his successful bet against the U.S. housing market before the 2008 financial crisis. He became one of the great American investors He founded Scion Asset Management and is known for his deep-value investment approach.
- Larry Fink. The growth of passive investment is likely the most crucial factor affecting the equity markets in the modern era. Larry Fink's BlackRock has been a driving force behind this significant structural market shift. He leads BlackRock, the world's largest asset manager with $8 trillion in assets under management. BlackRock has led the investor stampede into passive exchange-traded funds and is the world's most successful asset manager. As BlackRock is frequently one of the top owners of any particular U.S. public corporation, it significantly influences what happens in the markets.
- Greg Jensen. Jensen has a strong track record of success in this sector and is one of the best investors now. The macro investor recognised the rise in inflation and its implications, which included a rapid increase in bond yields. Due to Ray Dalio's decision in October to give up leadership of the firm he established, Jensen is now one of two co-chief investment officers of the world's largest hedge fund. In addition to the $150 billion in assets that Bridgewater Associates manage, Jensen is a regular contributor to the firm's Daily Observations newsletter, where you can learn more about where he thinks the market is headed.
3 great investors in the UK you should know about
The UK is home to some of the world's most successful investors, with a long history of producing investors who have achieved outstanding returns for their clients. Here, we look at some of the great investors in the UK who have earned a reputation for their investment prowess:
Anthony Bolton
Anthony Bolton is another legendary investor in the UK, known for identifying undervalued companies and generating strong returns for his clients. Bolton managed the Fidelity Special Situations Fund for over 28 years, delivering an average annual return of 20%. His investments usually focused on small-cap stocks, taking a contrarian view on those that were temporarily underperforming.
Source: China Morning PostAt the heart of Bolton's investment strategy is a focus on value investing, which involves identifying companies trading below their intrinsic value. Bolton believes that by identifying undervalued companies, he can buy them at a discount and benefit from their potential for long-term growth.
Another key aspect of Bolton's investment strategy is his focus on small-cap stocks. Bolton believes that smaller companies offer greater potential for growth than larger, more established companies and that other investors often overlook them.
Another key aspect of Bolton's investment strategy is his focus on small-cap stocks. Bolton believes that smaller companies offer greater potential for growth than larger, more established companies and that other investors often overlook them.
Terry Smith
Terry Smith is one of the most successful investors in the UK, with a long track record of delivering strong returns for his clients. Smith is the founder of Fundsmith, a global investment management firm, and manages the Fundsmith Equity Fund. His investment approach is characterised by his focus on quality companies with strong competitive advantages and his emphasis on a long-term investment horizon.
Source: InvestmentWeekHe believes that by investing in high-quality companies with strong competitive advantages, he can benefit from their ability to generate solid and sustainable profits over the long term. Smith looks for companies with a proven track record of delivering strong returns on equity, high operating margins, and low debt levels.
Smith believes that by investing in quality companies, he can reduce the risk of losses and benefit from the potential for long-term growth.
Smith believes that by investing in quality companies, he can reduce the risk of losses and benefit from the potential for long-term growth.
Nigel Thomas
Thomas is one of the most successful investors in the UK, with a long and distinguished career spanning over three decades. During his career, Thomas has achieved outstanding returns for his clients. His investments tend to be in growth-oriented companies with strong fundamentals.
Source: CityWireAt the heart of Thomas's investment strategy is growth investing, which involves identifying companies with strong growth potential in their earnings and revenue.
He is also known for his active management style. He believes that by actively managing his portfolio and making changes to his holdings as market conditions change, he can benefit from the potential for long-term growth and generate above-average returns for his clients.
Thomas is known for being willing to take bold positions in companies and sectors with strong growth potential. He is fearless in selling positions that no longer meet his investment criteria.
The reviewed investors have successfully applied various strategies; however, as with all investments, your capital remains at risk if you decide to implement these in your personal investing plan.
As seen throughout this article, the investors we have reviewed have successfully applied various strategies to make them a significant amount of money. However, as with all investments, your capital remains at risk if you decide to implement these in your personal investing plan.
He is also known for his active management style. He believes that by actively managing his portfolio and making changes to his holdings as market conditions change, he can benefit from the potential for long-term growth and generate above-average returns for his clients.
Thomas is known for being willing to take bold positions in companies and sectors with strong growth potential. He is fearless in selling positions that no longer meet his investment criteria.
The reviewed investors have successfully applied various strategies; however, as with all investments, your capital remains at risk if you decide to implement these in your personal investing plan.
As seen throughout this article, the investors we have reviewed have successfully applied various strategies to make them a significant amount of money. However, as with all investments, your capital remains at risk if you decide to implement these in your personal investing plan.
Recap
From Warren Buffett's value investing approach to Peter Lynch's growth strategy, we explored each investor's unique approach that has helped them achieve incredible success in the stock market.
We learned the importance of having a clear investment philosophy, thorough research and analysis, and a long-term perspective. By studying the approaches of these successful investors, we can all improve our investment strategies and achieve greater success in the stock market.
We learned the importance of having a clear investment philosophy, thorough research and analysis, and a long-term perspective. By studying the approaches of these successful investors, we can all improve our investment strategies and achieve greater success in the stock market.
FAQ
Q: Who are the best investors of all time?
The ultimate definition of being one of the best investors ever is being one of the few who earned consistent above-average investment returns over multiple decades. Usually, in the process of earning such returns, these investors become very rich while adding new ideas about how to invest for others to follow in their footsteps.
Some of the most famous investors also became authors, writing about their methods and what they think brought them success. That includes Warren Buffett, George Soros, Peter Lynch, John Templeton, and Benjamin Graham. Their words and actions have been absorbed and used by thousands of aspiring investors.
Some of the most famous investors also became authors, writing about their methods and what they think brought them success. That includes Warren Buffett, George Soros, Peter Lynch, John Templeton, and Benjamin Graham. Their words and actions have been absorbed and used by thousands of aspiring investors.
Q: Who is the greatest investor in the world?
Everyone tends to have their own favourite investor- usually, someone whose style of investing they most try to emulate. There probably isn’t one person who’s the greatest, but some of the most well-known we have written about above, including - Warren Buffett, George Soros, Peter Lynch, John Templeton, and Benjamin Graham.
Each of these investors has a unique investment strategy and philosophy that has helped them achieve major fame and success in the financial world. For everyday long-term investors, Warren Buffett is probably the best-ever investor. While George Soros is perhaps the top idol of the more active and professional speculators, especially in macro markets. Put another way, what makes an investor "great" varies in the eye of the beholder.
Each of these investors has a unique investment strategy and philosophy that has helped them achieve major fame and success in the financial world. For everyday long-term investors, Warren Buffett is probably the best-ever investor. While George Soros is perhaps the top idol of the more active and professional speculators, especially in macro markets. Put another way, what makes an investor "great" varies in the eye of the beholder.
Q: Who is the richest investor in the world?
Warren Buffet is the no.1 richest investor in the world, with a net worth of $106 billion (as of May 2023). His annual Berkshire Hathaway investor conference and his many TV interviews mean he is not only the richest but also the most well-known and respected investor in the world.
Warren Buffett made his first investment in the stock market when he was 11 years old. After reading the book "1000 Ways to Make $1000" Buffett tried his hand at several small ventures like selling Coke bottles and magazines. By the time he graduated from high school, he had enough money to buy a 40-acre farm.
Warren Buffett made his first investment in the stock market when he was 11 years old. After reading the book "1000 Ways to Make $1000" Buffett tried his hand at several small ventures like selling Coke bottles and magazines. By the time he graduated from high school, he had enough money to buy a 40-acre farm.
Q: Who is the youngest investor?
There are probably other examples, but one notable young investor is Alex Banayan. He joined Alsop Louis Partners as a member of the firm's venture capital associate team at 19- that made him the youngest investor in history to be hired for such a leading role within an investment firm.
Q: Who is the father of investors?
The term "father of investing" is often attributed to Benjamin Graham, an economist and investor widely regarded as the founder of value investing. In his 1934 book "Security Analysis," Graham's investment philosophy emphasised the importance of investing in undervalued stocks with strong fundamentals, such as low price-to-earnings ratios and high dividend yields.
