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 the most 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 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.
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 Most Famous Investment Gurus of All Time
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 a student 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.
Pension funds suffer largest investment losses since 2008 financial crisis
Canadian defined-benefit pension plans collectively suffered their largest losses since the 2008 financial crisis in 2022, recording a median decline in assets of 10.3 per cent despite a partial recovery in the final months of the year, according to a survey from Royal Bank of Canada RY-T.
Pension assets suffered heavy losses in the first two quarters of 2022 before starting to recover in the back half of the year. In the final quarter, pension assets returned 3.8 per cent, as measured by the RBC Investor and Treasury Services All Plan Universe, which serves as a benchmark for performance.
Pension plan investors were battered by unusually volatile markets driven by high inflation and rapidly rising interest rates, as both stocks and bonds returned losses, instead of helping offset each other as has often been the case in past market downturns. And although plans earned positive returns to finish the year, they are facing many of the same pressures in 2023.
“In the next few months, plan sponsors will need to be attentive to risk factors such as the economic impact of the central banks’ actions, ongoing geopolitical tensions and ongoing efforts to contain the COVID virus outbreak in certain emerging markets,” Niki Zaphiratos, managing director for asset owners at RBC I&TS, said in a news release.
Canadian pension plans’ bond portfolios had median losses of 16.8 per cent in 2022 – the largest annual decline in more than 30 years – and also trailed the benchmark FTSE Canada Bond Index. The losses were driven by the drastic action central banks took to tame inflation by raising interest rates, with longer-duration bonds that are most sensitive to inflation accounting for some of the largest declines.
Yet for pension plans, there was a silver lining to rapid interest-rate increases, which caused future liabilities to fall. As a result, more pension plans finished 2022 in surplus, meaning their assets were greater than their liabilities. And higher yields from fixed-income securities could also give pension plan investment managers more options to reduce risk-taking in their portfolios over the coming year.
Stocks also suffered, rather than acting as a counterweight to falling bond prices. Foreign equities returned 9.7 per cent in the fourth quarter, but closed the year down 11.3 per cent, according to RBC I&TS. And Canadian equities returned 6.3 per cent in the final quarter of the year, bringing their annual loss to a comparatively modest 3.6 per cent. In general, value stocks performed better than higher-risk growth stocks in the quarter.
The last time pension assets declined so sharply was in 2008, when Canadian defined-benefit pension assets posted a median loss of 15.9 per cent.
Defined-benefit pension plans pay fixed benefits for as long as a beneficiary lives based on their contributions and years of service.
Intel Cuts Pay Across Company to Preserve Cash for Investment
(Bloomberg) — Intel Corp., struggling with a rapid drop in revenue and earnings, is cutting management pay across the company to cope with a shaky economy and preserve cash for an ambitious turnaround plan.
Chief Executive Officer Pat Gelsinger is taking a 25% cut to his base salary, the chipmaker said Tuesday. His executive leadership team will see their pay packets decreased by 15%. Senior managers will take a 10% reduction, and the compensation for mid-level managers will be cut by 5%.
“As we continue to navigate macroeconomic headwinds and work to reduce costs across the company, we’ve made several adjustments to our 2023 employee compensation and rewards programs,” Intel said in a statement. “These changes are designed to impact our executive population more significantly and will help support the investments and overall workforce needed to accelerate our transformation and achieve our long-term strategy.”
The move follows a gloomy outlook from Intel last week, when the company predicted one of the worst quarters in its more than 50-year history. Stiffer competition and a sharp slowdown in personal-computer demand has wiped out profits and eaten into Intel’s cash reserves. At the same time, Gelsinger wants to invest in the company’s future. He’s two years into a turnaround effort aimed at restoring Intel’s technological leadership in the $580 billion chip industry.
Gelsinger will keep using cash to reward shareholders, meanwhile. Intel said last week that it remains committed to offering a competitive dividend. Analysts have speculated that the company may lower its payout to cope with the slowdown.
Under Gelsinger’s plan, the company is looking to introduce new production technology at an unprecedented pace. It will also build new plants in Europe and the US and try to win orders from other chipmakers as an outsourced manufacturer. That move will put Intel in direct competition with Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., two Asian companies that have passed it in the rankings of chipmakers by size and capabilities.
Intel isn’t the only big company trimming executive pay. Apple Inc., one of the few tech giants to forgo major layoffs, is cutting the pay of CEO Tim Cook by more than 40% to $49 million for 2023. Some high-profile finance firms have made similar moves, with Goldman Sachs Group Inc. CEO David Solomon seeing his 2022 compensation trimmed by about 30% to $25 million.
Intel is taking other steps to rein in expenses. That includes headcount reductions and slower spending on new plants — part of an effort to save $3 billion annually. That figure will swell to much as $10 billion a year by the end of 2025, the company has said.
Intel, which informed staff of the latest cutbacks earlier Tuesday, is also reducing the match it offers to pension contributions. The Santa Clara, California-based company thanked employees for their patience and commitment.
Hourly workers and employees below the seventh tier in the company’s system won’t be affected.
(Updates with spending plans and earnings report starting in fourth paragraph.)
Lithium Americas stock rises on GM’s $650 million equity investment
Lithium Americas Corp.
stock was up 9.2% in premarket trading Tuesday after it said General Motors Co.
agreed to invest $650 million in the company to help develop Nevada’s Thacker Pass mine, the largest known lithium source in the U.S. Lithium Americas said the project would create 1,000 jobs in construction and 500 in operations. It would produce lithium for up to 1 million electric vehicles (EVs) a year. Lithium from Thacker Pass will be used in GM’s proprietary batteries for its EVs. “Direct sourcing critical EV raw materials and components from suppliers in North America and free-trade-agreement countries helps make our supply chain more secure, helps us manage cell costs, and creates jobs,” GM CEO Mary Barra said. Thacker Pass is scheduled to go into operation in the second half of 2026, the companies said.
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