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The greatest investors take long rail records of generating market-crushing returns over their investing careers. Their successes, in turn, enrich the investors who entrust them with their money. Their uncanny power to create wealth is what makes them famous.

Here’s a closer await at some of the almost well-known investors in the world:

ane. Neb Ackman

Bill Ackman manages hedge fund Pershing Square Uppercase Direction. He has a history of producing impressive returns. In the eighteen-year period from 2003 to 2021, Ackman generated a 17.i% annualized return, significantly outperforming the
Due south&P 500’s (SNPINDEX:^GSPC) 10.ii% annualized return. Similar many investors, Ackman’s functioning has suffered during the stock market sell-off of 2022, with his fund falling one.7% through the commencement three months of the year. However, that still outperformed the Southward&P 500 by almost three percentage points.

One of the keys to Ackman’due south sustained success is his activist investing arroyo. Ackman purchases large stakes in public companies that he believes would be more valuable past making certain operational or structural changes. Later on acquiring an influential stake, he then uses that influence to hogtie the visitor to adjust its business. Ackman sells his holdings once the visitor reaches his target value.

Man presenting to group of investors

Source: Getty Images

two. Benjamin Graham

Benjamin Graham was an investing pioneer. He invented the concept of value investing in the 1920s — an arroyo that prioritizes buying stocks priced beneath their intrinsic values. Graham wrote ii of the most famous books on investing,
Securities Analysis
with David Dodd and
The Intelligent Investor. As both a lecturer at Columbia Academy and a fund manager, Graham played a determinative role in Warren Buffett’due south ascent as a value investor.

3. Warren Buffett

Buffett might be the nigh famous investor of all. Known as the “Oracle of Omaha,” he worked for and learned from Graham until the value investing pioneer retired. Buffett then proceeded to establish his own investing partnership to focus on buying stakes in quality companies at fair prices.

In 1965, he purchased material maker
Berkshire Hathaway
(NYSE:BRK.A)(NYSE:BRK.B) and turned information technology into a holding company for his growing investment portfolio. Berkshire Hathaway’due south portfolio contains sizable stakes in many public companies across a broad range of industries. He’s made Berkshire Hathaway into an insurance, energy, and industrial powerhouse that owns some of the globe’due south nearly iconic brands.

Buffett’s investing arroyo has produced awe-inspiring investment returns over many years. Since 1965, Berkshire Hathaway has produced an average almanac return of xx% — about double the performance of the S&P 500 during the same flow. To put that outperformance into perspective, the stock could autumn 99% and nevertheless come out ahead of the broader market.

4. John (Jack) Bogle

Jack Bogle founded the Vanguard Group in 1975. He pioneered the no-load common fund, which, past eliminating reliance on third-party brokerages, doesn’t charge a sales committee. He also created the showtime depression-cost index fund, called the Vanguard 500, which aimed to friction match the S&P 500’south operation in commutation for but a minimal fee. His approach, which has only grown more popular with the rise of exchange-traded funds (or ETFs, a type of index fund), enables investors to capture returns aligned with the broader market without paying excessive fees.

5. Cathie Wood

Cathie Wood is the founder, CEO, and chief investment officeholder of ARK Invest, an investment management company that establishes and actively manages a portfolio of ETFs. Founded in 2014, ARK Invest had expanded its assets nether direction to $24 billion past early 2022. I of the firm’s top ETFs, the
ARK Innovation ETF
(NYSE:ARKK), has produced a 177% gain over the past five years every bit of early 2022. While that’south well below its acme due to the sell-off in tech stocks, it was still ahead of the South&P 500’due south 106% return in the same period. Further, Forest believes the sell-off is an opportunity for long-term investors. Although her fund targets a 15% annualized return over a five-twelvemonth menstruation, she sees the potential for more than than 50% returns in the future every bit the market place recovers.

6. Peter Lynch

Peter Lynch made a name for himself as an investor by managing the
Allegiance Magellan Fund
(NASDAQMUTFUND:FMAGX), a common fund sponsored by Fidelity Investments. Between 1977 and 1990, Lynch increased the fund’s assets under management from $twenty 1000000 to more than $14 billion. The Allegiance Magellan Fund outperformed the S&P 500 in 11 years of his 13-twelvemonth tenure, producing an average annual return of 29%.

Lynch has authored several classic books on investing, including
1 Upwardly on Wall Street,
Beating the Street, and
Learn to Earn
(with the latter co-authored with John Rothchild). Lynch’southward work contains many invaluable investing tips.

7. Carl Icahn

Carl Icahn, like Bill Ackman, is an activist investor who acquires significant stakes in public companies to force changes that Icahn believes will increase shareholder value. In the tardily 1970s and early 1980s, Icahn developed a reputation for being a “corporate raider” — someone who engineers hostile takeovers of companies and and then slashes costs and sells avails to boost the value of the corporate raider’s shares.

Icahn focuses his activism on companies that he believes are undervalued due to mismanagement, and he often seeks to force changes related to a company’south leadership team and its governance.

viii. Chamath Palihapitiya

Chamath Palihapitiya is a venture capitalist, engineer, and the CEO of Social Capital. Palihapitiya was an early senior executive at
Meta Platforms
(NASDAQ:META) (formerly Facebook), and is besides a not-professional person investor. He left Facebook in 2011 to establish The Social+Capital Partnership (renamed as Social Capital in 2015), a venture uppercase fund focusing on applied science companies.

Palihapitiya uses the special purpose acquisition company (SPAC) structure to profit from taking companies public. Past SPAC merger targets include Richard Branson’s infinite company
Virgin Galactic
(NYSE:SPCE), the online real estate visitor
Opendoor Technologies
(NASDAQ:OPEN), financial services company
SoFi
(NASDAQ:SOFI) and the information-driven health insurance provider
Clover Health
(NASDAQ:CLOV). Shares of the four companies lost an boilerplate of 30% of their marketplace value in 2021 every bit the stock marketplace started to slide. Although Palihapitiya’s notable investments have underperformed, he’s earned the reputation of a “SPAC King” for his power to bring innovative companies to the public marketplace.

9. George Soros

George Soros founded the hedge fund visitor Soros Funds Direction in 1973, which after became the Quantum Fund. He’s an aggressive and highly successful hedge fund manager who consistently generates annual portfolio returns of more than than 30%, with the gains for two of those years exceeding 100%. Soros nets spectacular gains by making massive directional short-term bets on currencies and securities, including stocks and bonds.

10. Sallie Krawcheck

Sallie Krawcheck is the CEO and co-founder of Ellevest, a digital-outset, mission-driven investment platform for women. She too chairs the
Pax Ellevate Global Women’s Leadership Fund
(NASDAQMUTFUND:PXWEX), a common fund focused on companies that rate highly for advancing women.

Earlier those roles, Krawcheck led some of Wall Street’s biggest names, including serving as the CEO of Merrill Lynch, Smith Barney, The states Trust, Citi Private Banking company, and Sanford C. Bernstein. Krawcheck is on a mission to help women reach their financial and professional goals and narrow the gender pay and wealth gap.

In June 2022, The Motley Fool had the chance to chat with Krawcheck on our podcast.

11. John Templeton

John Templeton is considered one of the all-time contrarian investors. During the Slap-up Depression, he famously bought 100 shares of each company listed on the New York Stock Commutation that traded for less than $ane. That simple, bold wager made him a very wealthy man. He founded his flagship mutual fund, the Templeton Growth Fund, in 1954 and produced annualized returns exceeding 15% over 38 years. He also pioneered international investing, having established some of the largest and most successful cross-border investment funds. He eventually sold his firm, Templeton Funds, to the Franklin Group, which is at present
Franklin Resources
(NYSE:BEN).

12. David and Tom Gardner

We would be remiss if nosotros did not requite an honorable mention to David and Tom Gardner, who co-founded the multimedia financial services company The Motley Fool in 1993 to help people attain fiscal freedom. Since launching their flagship
Stock Advisor
service in February 2002, the Gardner brothers take delivered a 353% total return to their subscribers through May 9, 2022 — vastly outperforming the Due south&P 500’s 123% gain during that fourth dimension period. The Gardner brothers recommend stocks to subscribers and invest in those same stocks themselves.

Other famous investors

The higher up list is not exhaustive. Many other investors have earned proper noun recognition for their ability to deliver market-beating returns year afterward twelvemonth. For example, while Warren Buffett and John Templeton are some of the most famous value or contrarian investors, Jim Rogers, Marc Faber, and others have likewise earned reputations for their value investing success. Several investors, including Thomas Rowe Price Jr. and Phillip Fisher, have made names for themselves by successfully investing in growth stocks, and both are considered “fathers” of growth investing.

Non all famous investors earned their public image by creating wealth via the stock market. Billionaire existent estate investors Sam Zell, Stephen Ross, and Donald Trump are famous for their ability to turn a profit from real estate investments. Meanwhile, Bill Gross — dubbed the “King of Bonds” — eschewed the stock market in favor of bond investing.

What do about famous investors have in common?

As this list shows, anyone can be a highly successful investor. However, one of the keys to success for the virtually famous investors is that they have a long-term mindset. Anyone tin take a downwards year, which has been the case for many famous investors in 2022. However, the central to being successful is to press through the challenging times. That’s axiomatic in the following nautical chart:

Data source: Bank of America
Decade Southward&P 500 price return Return excluding the ten all-time days per decade
1930 -42% -79%
1940 35% -xiv%
1950 257% 167%
1960 54% 14%
1970 17% -20%
1980 227% 108%
1990 316% 186%
2000 -24% -62%
2010 190% 95%
2020 18% -33%
Since 1930 17,715% 28%

Investors who abandoned the market place and missed its 10 best days in any given decade significantly underperformed those who stuck with investing during the tough times. It’southward during challenging times that the best investors are buying and then that they don’t miss the eventual recovery.

Another feature that famous investors share is their focus on and mastery of one specific approach to investing. Whether it’s identifying value stocks, growth stocks, or pushing for change as an influential activist, these famous investors earn outsized returns by leveraging their deep investment knowledge and staying focused on the strategies that delivered consistent profitability.

Randi Zuckerberg, a former director of marketplace development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’southward board of directors. Matthew DiLallo has positions in Berkshire Hathaway (B shares), Meta Platforms, Inc., and Opendoor Technologies Inc. The Motley Fool has positions in and recommends Berkshire Hathaway (B shares), Meta Platforms, Inc., and Opendoor Technologies Inc. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.

Source: https://www.fool.com/investing/how-to-invest/famous-investors/

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