Each field has its own geniuses. Their words are quoted by the world media. Their photos adorn the offices of specialized educational institutions. They are admired. The investment world is no exception. It also has its own heroes, which are imitated by millions of followers. Let’s take a closer look at legendary investors who have become examples for financiers, economists and traders from around the world. And we will find out how they managed to achieve dizzying success.
“I do not play within this set of rules, I seek to change the rules of the game.”
This legendary investor was born on August 12, 1930 in Hungary, in the city of Budapest. The future trader received his higher education in London. He successfully graduated from the London School of Economics. As a student, George Soros worked part-time in the service sector and tried himself as a factory worker.
In 1956 he moved to the United States. For the first four years, George worked as an analyst at W&C. Then he got a job at the largest investment company Arnhold and S. Bleichroeder. Here he was promoted to vice president and created the First Eagle Foundation. In 1973, George Soros founded the Quantum Group, a network of Soros funds. For ten years, the company’s profitability amounted to more than 3000%.
Among traders, George Soros became famous for currency speculation with the British pound on September 16, 1992. One short trade has earned him over $ 1 billion.
The activities of the legendary trader are not limited to investments. In addition to trading, he is engaged in charitable activities and is actively involved in political activities. In addition, George Soros is a doctor of Oxford, Yale University and other famous universities.
What is his secret?
George Soros has never invested large sums at once. Firstly he tests any theory and starts with a small test sum. The investor believes that it is necessary to study the market sentiment for successful trading, since it is the crowd that moves the price.
Soros’s fortune for 2020, according to Forbes, is $ 8.6 billion.
Warren Edward Buffett
“If you want to become a baker, learn from a baker, if you want to be a millionaire, learn from a millionaire.”
This is the most famous investor in the world. Buffett was born on August 30, 1930 in the United States, in Nebraska. He first became acquainted with the stock market at the age of 11. Together with his sister, he acquired three shares. The first proceeds were $ 5. And after a while, these shares soared in price to $ 202 apiece. Then Warren said that this situation was a major lesson for him. He realized that he had to be patient and not sell out of emotion for short-term profits.
At 15, Buffett tasted money for the first time. He got a job as a newspaper peddler. And also in 1945, Warren opened his first small slot machine business.
Warren Buffett graduated from Columbia University. Immediately after graduating from university, he was unable to find a suitable job. Nobody wanted to hire the future legend because of his Jewish roots. Even his future teacher, famous Benjamin Graham, with whom Buffett became the best student.
Disappointed, Warren left Columbia and went to his hometown. There he got a job as a broker in a small investment company.
On August 2, 1954, Warren Buffett went to work for his teacher, who nevertheless invited him to his company Graham-Newman.
At 26, he returned with his wife and children to Omaha. There Warren started his company. As partners, it included only relatives of the Buffet family.
The greatest trader earned his first million at the age of 30. He charged a commission for managing his own fund. According to his 90/10 strategy, the investor’s portfolio should contain 90% of stocks and 10% of bonds.
Today, Buffett’s fortune is $ 79.9 billion. His portfolio includes Berkshire Hathaway, which owns, in whole or in part, many of the world’s leading companies.
“Dividends don’t lie.”
Geraldine Weiss was born on March 16, 1926 in San Francisco. In 1945, the future millionaire graduated from the university with a degree in finance. However, she did not succeed in realizing herself in the field of finance right away.
Geraldine has long tried to get a job as a financial analyst or stockbroker. But the employers did not want to hire a woman for these positions. They didn’t believe she could be successful in finance.
In 1966, Weiss abandoned job attempts for a coveted job and began issuing investment recommendations. She made out her texts in the newsletter. However, she hid her authorship until 1970 and signed with a man’s name.
Almost the entire strategy of Geraldine Weiss is based on the analysis of dividends of the companies, with the shares of which it is planned to work.
She detailed her strategy in the books Dividends Don’t Lie (1988) and The Dividend Connection (1995).
“Remember, you attract what you believe in and what you think about.”
The famous investor was born on November 29, 1912 in Tennessee in a businessman’s family. In 1934, John graduated from the Department of Economics at Yale University. Then he entered Oxford at the Faculty of Law.
Templeton had his own strategy. He bought huge quantities of low-cost shares. Of more than a hundred companies whose securities were in this investor’s portfolio, only four went bankrupt. In this way, Templeton made his billion-dollar fortune.
His success story goes back to the diversified mutual fund industry. Every $ 10,000 Templeton had during his tenure at Templeton Growth Fund, he was able to turn into $ 20 million,
According to Money magazine, John Templeton is “the greatest stock collector of the twentieth century.”
“Buy an asset at the bottom, sell when it rises” – this is the advice John gives to novice and experienced investors.
“Any business school graduate should be able to outperform the index fund during the market cycle.”
The famous American economist was born on June 16, 1936 in Boston. In 1961 he received his Ph.D. in economics from the University of California. Then William Sharp taught at the University of Washington, and then became a professor at the University of Stanford.
The world first learned about him in 1964. Then the Journal of Finance published an article by William. It focused on asset pricing models.
Over time, this work became one of the foundations of economics in financial universities. Today, investors around the world use the Sharpe ratio to form their portfolio. It determines the potential return on the security.
In 1989, Sharpe finally said goodbye to teaching. He founded his own consulting company, Willam F. Sharpe Associates.
“In its broadest sense, the word ‘invest’ means: parting with money today in order to get more money in the future” is the most popular quote from William Sharpe from the 2001 textbook “Investments”.
The biography of each legendary investors is unique. Some, like Buffett, make their first investment successes as a child. Others, like Geraldine Weisz, go through financial difficulties, discrimination, and only after many years achieve success.
All legendary investors started their way back in the 20th century. Then trading had less opportunities as it has now. In 21st century you can trade thousands of assets on marketplaces, such as Dutch Rate or Alpari.
But one thing remains the same. All the greatest traders and legendary investors were not afraid to take risks and went to their goals no matter what.