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I thought it would be fun to look at some of the most successful investors in modern history. These are all those who have made a lot of money by adhering to sound investment principles.
If you look at their methods, you'll notice that they're not overly complex or complicated — they stick to a company's core financials and look for value. They invest if they believe there is value, and they profit handsomely!
John “Jack” Bogle
The Vanguard Group, which most people connect with low-cost mutual funds, was founded by Jack Bogle. That is not, however, how he articulated it. He proceeded to work for Wellington Management Company after graduating from Princeton University, where he quickly ascended through the ranks to become Chairman.
Despite being fired as a result of a disastrous merger, he learned a valuable lesson and went on to form The Vanguard Group.
Bogle would expand The Vanguard Group into the second-largest mutual fund company with his new company and a novel approach for index mutual funds. Bogle prefers to keep things simple when it comes to investing, and he's outlined eight basic rules for investors:
Warren Buffett
Buffett's investment strategy is simple: he buys companies at a low price, improves them through management or other changes, and realizes long-term stock price gains (also known as value investing). He seeks companies that he is familiar with and keeps things simple.
Many have chastised him for eschewing computer businesses and other areas, yet he has achieved incredible results by sticking to his knowledge.
Buffett's investment strategy is straightforward: he buys companies at a low price, improves them through management or other changes, and realizes long-term stock price gains (also known as value investing). He looks for companies that he is familiar with and keeps things simple.
Many have chastised him for skipping computer businesses and other areas, yet he has achieved extraordinary results by sticking to what he knows.
Philip Fisher
Philip Fisher is known as the "Father of Growth Stock Investing." Fisher & Company, founded in 1931 and ran until his retirement in 1999 at the age of 91, was his own investment firm. During his 70-year career, Fisher earned excellent returns for himself and his clients.
Fisher concentrated on long-term investments. In 1955, he notably purchased Motorola shares and kept them until his death in 2004. He devised a fifteen-point checklist of qualities to look for in common stock, focusing on management and business characteristics.
Integrity, conservative accounting, accessibility, and a long-term vision were all important attributes for management: openness to change, effective financial controls, and good personnel practices.
Growth orientation, strong profit margins, high return on capital, commitment to research and development, outstanding sales organization, leading industry position, and proprietary products or services are important company qualities.
Benjamin Graham
Benjamin Graham is most known for being Warren Buffett's instructor and mentor. It's worth noting that he rose to this position as a result of his efforts as the "Father of Value Investing." Without taking large risks in the stock market, he made a lot of money for himself and his clients.
He was able to accomplish so because he only employed financial analysis to invest in equities successfully. Many aspects of the Securities Act of 1933, which mandated public firms to release independently audited financial accounts, were influenced by him.
Graham also emphasized the importance of having a margin of safety in one's investments, which meant buying substantially below a company's conservative valuation.
Bill Gross
Many regard Bill Gross to be the "King of Bonds." He is the founder and chief investment officer of PIMCO, and he and his colleagues manage approximately $600 billion in fixed-income assets.
Bill's primary concentration is on buying individual bonds, but he also has an investment strategy that is concerned with the overall portfolio. He believes that long-term investment success is built on two pillars: the capacity to establish and explain a long-term outlook and having the proper structural composition in one's portfolio over time to take advantage of that outlook.
He goes on to argue that the long-term should be roughly 3-5 years and that by thinking this far ahead, investors may avoid the emotional whiplash of day-to-day markets.
They have been the topmost investor for a long time, and their experience may help every trader to start investing in the trading field.
