Friday, September 30

Who is the best investor in history?


Warren Buffett, the Oracle of Omaha

Warren Buffett He became famous for the lengthy duration of his career as an asset manager and for the colossal returns achieved: 23% annual average over 65 years. Through Berkshire Hathaway (which is also publicly traded), Warren Buffett specialized in comparing the sustained returns in equities, with an annual average return of the 20%, since 1965. But if the first years are added, when he managed a family capital, between 1955 and 1965, the average annual profitability reaches the 23%.

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Nebraska. In the middle of his Berkshire fund’s annual meeting, Warren Buffett called a full-scale conflict with China “unlikely.”

According to Cinco Días, the figure may not be dazzling, but what is exceptional is the extremely long period of good returns. Some 100 dollars invested with Warren Buffett in 1955 they would have become today u $ s64 million. Today Warren Buffett He is the sixth richest man in the world, with a heritage of u $ s102,000 million.

Charlie Munger, right hand man

But Warren BuffettThe 91-year-old doesn’t act alone. His right hand, Charlie Munger, 97, was a key piece of Berkshire Hathaway, advising the Shareholders’ Meeting.

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Charlie Munger, in a red tie, and Warren Buffet, in a blue tie.

Gentileza: The Shoe Shiner Kid on Wall Street

Charlie Munger, who is also from Omaha, Nebraska, worked as a teenager in a small warehouse owned by Buffett’s father. From 1962 to 1975 he maintained his own investment firm, with which he obtained an average solo return of 19.8%. In 1978 he became vice president of Berkshire Hathaway.

George Soros, the man who took on the Bank of England

George Soros, who is the same age as Warren Buffett, was born in Budapest (Hungary) in 1933. In 1971, after working for various banks, he founded his own hedge fund with Jim Rogers. Between that year and 2011 he achieved an average annual return of 20% for the participants of this vehicle. It is a high return, although for a hedge fund not so much.

Back. Soros is among the foreign investors encouraged by the changes in the economy promoted by the Macri government.

Back. Soros is among the foreign investors encouraged by the changes in the economy promoted by the Macri government.

Cinco Días remarked that the most striking anecdote of Soros’ career was the short bet against the pound sterling, but the truth is that already in the 1980s it began to use what is called investment through algorithms. Soros met for a brief period with another industry figure who, this yes, has achieved stratospheric results, Jim Simons.

Hedge funds or hedge funds, compared to conventional investment funds, have hardly any restrictions on their operations. They can go short against any asset, go into debt, buy and sell in milliseconds, purchase options, hedges and all kinds of derivative contracts, or concentrate the portfolio in a handful of securities. Things that normal fund managers cannot do so freely.

Jim Simons, the mathematician who beat the markets

Simons, a mathematician by training, converted the investment through his hedge fund Renaissance Technologies in a precision tool like never seen before. As the journalist said Gregory Zuckerman on The Wall Street Journal: “Simons managed to pass the markets.” The vehicle he managed achieved a 66% gross annual return between 1988 and 2018. The net income from commissions was 39%. These commissions were shared between Simons and his small team of mathematicians.

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James “Jim” Harris Simons is an American mathematician, academic, fund broker, stockbroker, investor, and philanthropist. According to Forbes, his net worth reached $ 24.4 billion in 2021.

Since its creation, Renaissance has been an investment vehicle closed to the general public. Very few institutional investors were able to invest hand in hand with Jim Simons, and what happened inside the fund was a real black box, which is why many authors remove Simons from the more conventional list of the best investors.

Benjamin Graham, the Buffet Professor

Another manager that always appears in the lists of the best investors is Benjamin Graham, the former professor of Warren Buffett at Columbia University (New York). TO Benjamin Graham he is considered the father of investment in value (buying companies frowned upon by the market, to await their appreciation).

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Returns of Benjamin Graham they are not monstrous like his disciple’s: it achieved an annual average of 11.4% in 29 years.

Peter Lynch, creator of an iconic fund

Peter Lynch is the father of the emblematic Fidelity Magellan Fund, which accumulated a 29% return between 1977 and 1990. In that period, the Magellan became the largest investment fund in the world thanks, undoubtedly, to its juicy annualized double-digit returns. The fund earned its fame for being able to beat the S&P 500.

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The American Peter Lynch also advises to be patient and not let yourself go crazy with the pirouettes of the markets and the prices that fall.

Those who entrusted Peter Lynch some u $ s10.000 At the beginning of his tenure, 13 years later he would have in his account no less than u$s280.000. Your secret to investing is not a mystery: advises savers to invest for the long term, as this will ensure the best and safest returns.

Jim Rogers, the investor who withdrew on time

With a shorter track record than its elders, but surprisingly profitable, it appears Jim Rogers, who founded the fund Quantum Fund with George Soros in 1973.

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The Japan Times

Jim Rogers He retired very young, with 37 years, but in his active period he achieved a 38% average annual profitability. In its heyday, between 1973 and 1980, the fund appreciated by 4.200%.

John Templeton, author of a simple recipe

John Templeton He was born in 1912 in Winchester, a small town in the State of Tennessee, but at the height of his business project, he renounced his American nationality in favor of the British. In 1954 he founded Templeton Funds, whose strategy was defined by globalization and diversification. Its formula? To apply the old adage of “buy low and sell high”.

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John Templeton got a average annual return of 14.5% in 39 years trajectory as an investor.

Stanley Druckermiller, el quebrador

Stanley Printmiller was born in Pennsylvania in 1953. In 1981 he founded Duquesne Capital, although between 1988 and 2000 he managed money for George Soros as Senior Portfolio Manager for the Quantum Fund, and was one of those who caused the bankruptcy of the Bank of England.

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Stanley Printmiller he closed his fund in August 2010 because he felt unable to deliver high returns to his clients. At the time of closing, Duquesne Capital owned more than $ 12 billion in assets. During 30 years it added an average annual profitability of 30%.



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