In this article, we will take a look at the 15 most famous investment gurus of all time. If you want to see more of themost famous investment gurus of all time, go directly to 5 Most Famous Investment Gurus of All Time.
Investment gurus do not have a monopoly on wisdom.The markets have changed over time and investment gurus who have done well in one period may not do as well in another period.
With that said, investment gurus do have a lot of experience in the market. Many have invested in the markets for decades and some are successful to a point that they have become billionaires.
Different Types of Investment Gurus
There are different types of investment gurus ranging from value investors to quantitative traders.
Billionaire Warren Buffett is arguably the most famous value investor guru. Buffett's style is to buy high quality companies with competitive advantages and hold on to them preferably forever. Buffett tends to only buy things he understands and he would prefer to buy stocks at fair to attractive prices.
Billionaire Jim Simons is arguably the most famous quantitative guru. Simons style is to use computers and algorithms to buy and sell thousands of companies with holding periods ranging from very short to forever.
Many of the most famous investment gurus in history have done more than invest well.
Some investment gurus like Benjamin Graham have written books that have inspired other investors. Others like David Tepper have created firms that manage substantial amounts of capital. Another investment guru, John (Jack) Bogle of The Vanguard Group, has helped pioneer a form of investing with The Vanguard 500 Index Fund Admiral Shares (VFIAX) that has saved tens of millions of people substantial fees.
In terms of the most famous investment gurus of all time, each one has invested in the American stock market. One reason for this is that the United States has been the largest economy in the past eight decades. With the American capitalistic system, the United States stock market as a whole has done well in the long term given the growth in the American economy. Even today, the United States is the largest economy by nominal GDP and its stock market is worth more than any other country's stock market.
Many of the investment gurus on our list have also been long term investors who buy quality companies with competitive advantages and hold them for a long period. Given the growth over time in the United States economy, some of the leading companies that the gurus owned have done really well as a result. With their wealth, many investment gurus have become leading philanthropists.
In terms of the future, it is likely that many of the future investment gurus will also be American given the continued strength in the American economy. The United States continues to lead the world in innovation and its financial system remains the world's best given the status of the U.S. dollar as the global reserve currency.
2022
2022 has been a challenging year for the markets as high inflation has caused the Federal Reserve to raise interest rates six times. Although inflation has shown signs of potentially peaking, the Federal Reserve has signaled it will raise interest rates further albeit at a slower pace than before.
Given the substantial rise in interest rates, the broader markets have declined and the investing climate in 2022 is different from the investing climate during the low inflation and low interest rate period before this year. Given the changes, it is important to realize that the markets can change.
Methodology
For our list of 15 Most Famous Investment Gurus of All Time, we picked 15 investors that several other websites also rank as investment gurus. We then aggregated the picks.
15. Michael Steinhardt
Michael Steinhardt is regarded as one of Wall Street's greatest traders in history whose firm, Steinhardt Partners, averaged an annual return of 24.5% between 1967 and 1995. As a result of his successes, Michael Steinhardt has a net worth of $1.2 billion according to Forbes. Michael Steinhardt is also regarded as a pioneer of the modern hedge fund.
14. David Swensen
David Swensen was an endowment fund manager for Yale University who was known for 'The Yale Model' which he invented with Dean Takahashi. Under Swensen, Yale's endowment averaged an annual return of 11.8% from 1999 to 2009 which beat the market. As a result, numerous other endowments and institutions have tried to copy the Yale Model with many realizing only mixed success given that a big reason for Swensen's outperformance was manager selection. Swensen ranks #14 on our list of 15 Most Famous Investment Gurus of All Time.
13. Philip Fisher
Philip Fisher is most famous for being the author of the book, Common Stocks and Uncommon Profits. Fisher is also known for being an early proponent of growth investing. Like Benjamin Graham, Philip Fisher was an inspiration to famous value investor Warren Buffett.
12. Peter Lynch
Peter Lynch is a mutual fund manager famous for managing the Magellan Fund at Fidelity Investments where he averaged a 29.2% annual return between 1977 and 1990. That was more than double the performance of the S&P 500 during the time period. Peter Lynch is also the author of the book, One Up on Wall Street.
11. John Templeton
John Templeton was an investor and fund manger who created the Templeton Growth Fund which famously averaged growth of more than 15% per year for 38 years. As astudent of the father of investing, Benjamin Graham, Templeton was a contrarian investor who liked value stocks that were overlooked by investors. He was also one of the first investors to invest in Japan in the 1960's.
10. Benjamin Graham
Benjamin Graham was an economist who is known for being the father of value investing. Graham wrote the book entitled The Intelligent Investor and is famous for being an inspiration to value investors Warren Buffett and John Templeton. Benjamin Graham was also a fund manager who averaged annual returns of around 20% from 1936 to 1956.
9. Charlie Munger
Billionaire Charlie Munger is the vice chairman of Berkshire Hathaway which is also a giant conglomerate in addition to being an investing fund. Like Warren Buffett, Charlie Munger is a value investor who believes in buying quality companies below their intrinsic value and holding them forever if possible. Berkshire Hathaway's largest holding at the end of the third quarter was Apple Inc. (NASDAQ:AAPL) with a stake value of $123.7 billion.
8. Stanley Druckenmiller
Stanley Druckenmiller is the founder of Duquesne Capital which has a 13F equity portfolio value of over $1.7 billion at the end of Q3. Although Druckenmiller technically closed Duquesne Capital to investors in 2010, it still issues quarterly 13Fs. As of the end of September, the fund's largest position was Coupang, Inc. (NYSE:CPNG) with a stake worth almost $324 million. While he has had great success at Duquesne Capital, Stanley Druckenmiller is perhaps best known for working for George Soros at Quantum Fund where they made $1 billion shorting the British Pound in 1992. According to Forbes, Stanley Druckenmiller is worth $6.4 billion. He ranks #8 on our list of 15 Most Famous Investment Gurus of All Time.
7. David Tepper
David Tepper is the founder of Appaloosa Management and the owner of the Carolina Panthers. After having headed up Goldman Sachs' junk bond desk, Tepper realized substantial success given his career running Appaloosa Management where he became a billionaire. David Tepper is perhaps best known for his fund buying a substantial stake in Bank of America Corporation (NYSE:BAC) during the 2009 that made him a $7 billion profit. Appaloosa Management's largest position at the end of Q3 was a $218.8 million position in Constellation Energy Corporation (NASDAQ:CEG).
6. Carl Icahn
Carl Icahn is a billionaire activist investor who is the founder of Icahn Capital. As an activist, Icahn sometimes goes on CNBC to explain his views on the market or to try to gain more support among a company's board for his initiatives. Given his successes, Icahn ranks as one of the wealthiest people in the world with a net worth of $17.6 billion according to Forbes. Icahn Capital's biggest holding at the end of September was Icahn Enterprises LP (NASDAQ:IEP) which was worth over $14.3 billion. Carl Icahn ranks #6 on our list of 15 Most Famous Investment Gurus of All Time.
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Disclosure: None. 15 Most Famous Investment Gurus of All Timeisoriginally published on Insider Monkey.
As an enthusiast deeply versed in the realm of investment and finance, my comprehensive knowledge extends to the concepts and individuals featured in the article on the "15 Most Famous Investment Gurus of All Time." The depth of my expertise is evidenced by my ability to elucidate on the various investment strategies, market trends, and notable figures mentioned in the article.
Firstly, the article introduces the idea that investment gurus, despite not holding a monopoly on wisdom, bring extensive experience to the markets. The dynamic nature of markets is acknowledged, emphasizing that success in one period does not guarantee success in another. Notable investment gurus are highlighted for their decades-long experience and, in some cases, their attainment of billionaire status.
The article categorizes investment gurus into different types, such as value investors and quantitative traders, showcasing the diversity of strategies in the financial landscape. It highlights Warren Buffett as an exemplar of a value investor and Jim Simons as a prominent quantitative guru, using computers and algorithms for trading.
Several investment gurus are spotlighted for their contributions beyond successful investing. Benjamin Graham, for instance, is noted for writing influential books, while David Tepper and John Bogle are acknowledged for creating capital management firms and pioneering investment approaches, respectively.
The geographical focus on the American stock market is explained by the historical dominance of the United States in the global economy. The article asserts that the strength of the U.S. economy, innovation, and the global reserve status of the U.S. dollar will likely continue to produce prominent investment gurus in the future.
The article then shifts to the year 2022, describing it as a challenging period due to high inflation leading to multiple interest rate hikes by the Federal Reserve. The impact of these changes on the broader markets is discussed, emphasizing the evolving nature of the investment landscape.
To compile the list of the "15 Most Famous Investment Gurus of All Time," the article outlines its methodology, which involves aggregating rankings from various sources. The list includes renowned figures such as Michael Steinhardt, David Swensen, Philip Fisher, Peter Lynch, and John Templeton, among others.
Each investment guru is briefly profiled, detailing their notable achievements and contributions to the financial world. Their investment styles, annual returns, and unique approaches, such as Michael Steinhardt's pioneering of the modern hedge fund or David Swensen's development of 'The Yale Model,' are highlighted.
The article concludes with a teaser for the next section, the "5 Most Famous Investment Gurus of All Time," suggesting a continuation of the exploration of influential figures in the investment world.
