In this article, we will take a look at the 15 Most Successful Investors of All Time. You can also check out 12 Best Investments for Beginners in 2024.
According to Forbes, the world saw an increase in the number of billionaires in 2024. There now exist 141 more billionaires as compared to last year, reaching a whopping 2,781 in number. This number is even higher than the record which was set in 2021. And no, this is not all; these people are richer than ever with their cumulative worth set at $14.2 trillion, up by $2 trillion year over year as of 2023. The most surprising thing to note here is that despite the global stock markets battling with political unrest, war, and inflation, the riches of these individuals strived and grew manifold.
Many of these billionaires are investors who have years of experience in the investment industry, who not only have built fortunes for themselves but have also enriched other investors who entrusted them with their money So what makes them so successful and stand out from other investors? While investors might not agree on a lot of things, one thing all successful investors agree on is having a strategy. It has been established that making money in the market comes with a steadfast strategy that is built around a set of rules. These rules range from Warren Buffett’s, “Do Your Research” to Bill Gross’s, “Have Conviction”. With these ranging rules, their investment strategies differ. On the one hand, we have value investors, and on the other, quantitative investors.
Value investing is an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic value (real value). Value investors actively seek stocks they think the stock market is underestimating. When it comes to value investing, there is no bigger investor than the mighty Warren Buffett, who has the biggest stake in Berkshire Hathaway – a U.S.-based conglomerate MNC (multinational corporation), which recorded a net earnings figure of staggering $12.7 billion, according to company’s 2024 1st quarter results! The biggest advice from Warren Buffett for value investing is to look at the quality of the company before evaluating its price. Any new value investor should hold on to his golden words. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” Some of the other prominent names in this investment strategy are Benjamin Graham, David Dodd, and Charlie Munger, whom we are going to discuss shortly.
Coming onto the second investment strategy, quantitative investing, uses mathematical models and algorithms to identify investment opportunities. These strategies are systematic and remove much of the emotional element from investing. Some common approaches to quantitative investment strategies include statistical arbitrage, factor investing, risk parity, machine learning, and artificial intelligence. Jim Simson, a billionaire and an investing extraordinaire, was one of the most famous and successful quantitative investors. Jim used computer algorithms to buy and sell company shares in denominations of thousands with holding periods ranging from very short to forever.
Regardless of their investment strategy, the 15 Most Successful Investors of All Time mentioned in this article have not only navigated the complexities of the market successfully and built fortunes but have also contributed to the broader financial discourse through their writings, teachings, and operations and establishment of influential financial institutions like Vanguard Group (NYSE:VTI), Berkshire Hathaway (NYSE:BRK), and Icahn Enterprises (NASDAQ:IEP), and management of firms like Goldman Sachs (NYSE:GS) to name a few.
Also see: Warren Buffett’s 10 Best Quotes About Business, Investing, and Life and 15 Money Mistakes to Avoid in Your 30s.
A successful investor gazing out of a large bank building, the city skyline visible in the background.
Methodology
To create a list of the 15 Most Successful Investors of All Time, we scoured several sources across the web including US News, Motley Fool, Yahoo Finance, Investopedia, and Insider Monkey to compile a comprehensive list of successful investors. We then looked up their net worth as given in Forbes. For the investors who have passed away, their latest net worth provided by Forbes has been used, even though we recognize that their net worth could have continued to grow. With this approach, we shortlisted the investors with the highest net worth and arranged them in ascending order for this ranking. The list begins with the investor with the lowest net worth.
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15. Benjamin Graham
Net worth: $0.02 billion
Benjamin Graham was a distinguished investment manager and financial educator. He was widely known for his significant contributions to the field. He penned two seminal books on investing that are regarded as timeless classics, Securities Analysis and The Intelligent Investor. Renowned as the pioneer of both security analysis and value investing, Graham’s impact on the investment world is profound. As a fund manager from 1936 to 1956, he achieved impressive annual returns averaging approximately 20%.
14. John (Jack) Bogle
Net worth: $0.08 billion
John “Jack” Bogle established the Vanguard Group mutual fund company in 1975, transforming it into one of the globe’s most esteemed fund sponsors. He introduced the first low-cost index fund, the Vanguard 500, designed to replicate the performance of the S&P 500 with minimal fees. Although the initial underwriting in 1976 raised a modest $11 million, according to BCCM, by 2022, the Vanguard 500 fund had grown significantly, managing over $8.1 trillion in assets, according to Insider Monkey.
13. Peter Lynch
Net worth: $0.45 billion
Peter Lynch gained renown as a mutual fund manager through his exceptional leadership of the Magellan Fund at Fidelity Investments. From 1977 to 1990, Lynch achieved an impressive average annual return of 29.2%, more than doubling the performance of the S&P 500 during the same period. Beyond his successful investment career, Lynch authored the influential book “One Up on Wall Street.” He is also known for his “story” investing approach, selecting stocks based on detailed expectations of a company’s growth potential.
12. Michael Steinhardt
Net worth: $1.3 billion
Michael Steinhardt, a pioneering figure in hedge funds, made a significant impact by closing his fund in 1995 after achieving outstanding returns throughout the early 1990s. Although he initially retired, Steinhardt returned to the financial sector a decade later, lending his expertise to WisdomTree Investments, where he continues to be a major shareholder.
Recognized as one of Wall Street’s top traders, Steinhardt Partners, under his leadership, boasted an impressive average annual return of 24.5% from 1967 to 1995. According to Forbes, his financial prowess has earned him a net worth of $1.3 billion. Steinhardt’s influence extends beyond his fortune, as he is celebrated as a trailblazer in the development of the modern hedge fund industry.
11. Bill Gross
Net worth: $1.7 billion
Bill Gross, the co-founder and Co-Chief Investment Officer of Pacific Investment Management Company LLC (PIMCO), established the firm in 1971 and gained fame as a top bond fund manager. In 2014, he left PIMCO and joined Janus Henderson, where he managed a global macro bond fund until his retirement in 2019. According to Forbes, in 2015, Gross sued PIMCO for wrongful dismissal, and the lawsuit was settled in March 2017 for $81 million, which was donated to the Sue and Bill Gross Foundation. Gross graduated from Duke University in 1966 with a degree in psychology and has since donated millions to the university for financial aid.
10. Charlie Munger
Net worth: $2.6 billion
Charlie Munger, the esteemed vice chairman of Berkshire Hathaway (NYSE:BRK) and longtime friend and business partner of Warren Buffett, passed away in November 2023 at the age of 99. Munger held prominent positions on the boards of Berkshire, Daily Journal Corp., and Costco.
As a billionaire and value investor, Munger, much like Buffett, advocated for buying quality companies below their intrinsic value and adopting a long-term investment approach. Berkshire Hathaway’s largest holding, valued at $178 billion at the end of the third quarter of 2023, was in Apple Inc. (NASDAQ:AAPL).
9. Bill Ackman
Net worth: $4.3 billion
Bill Ackman, who oversees Pershing Square Capital Management, has a notable track record of achieving impressive returns. According to The Motley Fool, from 2003 to 2021, he delivered an annualized return of 17.1%, well above the S&P 500’s annualized return of 10.2%. Although Ackman’s fund experienced a decline of 1.7% during the first quarter of 2022 amid a broader market downturn, it still outperformed the S&P 500 by approximately three percentage points.
8. Stanley Druckenmiller
Net worth: $6.2 billion
Stanley Druckenmiller, the founder of Duquesne Capital, managed an equity portfolio valued at over $1.7 billion by the end of Q3 of 2023. Although he closed Duquesne Capital to investors in 2010, the firm continues to issue quarterly 13F filings. The largest position in the fund was Coupang, Inc. (NYSE:CPNG), with a stake valued at nearly $324 million.
In August 2010, Druckenmiller returned funds to clients and closed his $12 billion hedge fund, Duquesne Capital Management, as reported by Forbes. Despite this, his investment prowess remains impressive, with a 30-year track record of managing external funds at Duquesne Capital Management, achieving an average annual return of 30% without a single down year, according to Bloomberg.
7. Carl Icahn
Net worth: $6.5 billion
Carl Icahn, similar to Bill Ackman, is known for his activist investing strategy. He acquires large stakes in public companies to push for changes he believes will enhance shareholder value. Renowned as one of Wall Street’s most successful investors, Icahn has left a significant impact on corporate America over several decades.
His primary investment vehicle is the publicly traded Icahn Enterprises (NASDAQ:IEP), supported by an investment fund that includes both his personal capital and funds from Icahn Enterprises (NASDAQ:IEP). It was reported in the New York Times that Icahn made a notable philanthropic contribution, donating approximately $200 million to the institution now known as the Icahn School of Medicine at Mount Sinai.
6. George Soros
Net worth: $6.7 billion
George Soros, a prominent hedge fund manager, oversaw client funds in New York from 1969 to 2011, making a significant impact on the financial industry. According to LinkedIn, Soros gained international recognition in 1992 when he successfully shorted the British pound, reportedly earning $1 billion and becoming known as “the man who broke the Bank of England.” Soros employs the concept of reflexivity in his investment strategy, using market feedback to evaluate how assets are valued within the broader market. This method allows him to anticipate market bubbles and uncover investment opportunities by analyzing the interactions between market participants and asset valuations.
5. Philip Fisher
Net worth: $8.7 billion
Philip Fisher, a renowned investment strategist and author of “Common Stocks and Uncommon Profits,” is celebrated for his influential buy-and-hold investment philosophy. Fisher transformed investment thinking by emphasizing the importance of evaluating a stock based on its potential for long-term growth rather than focusing solely on current price trends or intrinsic value. Fisher’s principles revolve around identifying growth stocks through thorough fundamental analysis, establishing him as a pioneer in the growth investment strategy.
4. Steve Cohen
Net worth: $19.8 billion
Steve Cohen oversees Point72 Asset Management, a hedge fund firm managing $30.6 billion that began handling external capital in 2018, according to Forbes. Known for his success with SAC Capital, one of the most profitable hedge funds in history, Cohen encountered significant challenges when SAC Capital pleaded guilty to insider trading charges in 2019, resulting in $1.8 billion in penalties and the fund’s closure, according to Reuters. In 2020, Cohen made headlines by purchasing the New York Mets for a record-breaking $2.4 billion, the highest sale price ever for an MLB team, according to New York Magazine.
Cohen stresses the importance of thorough research, staying calm, and learning from mistakes to improve investment outcomes. His approach underscores the value of maintaining focus, avoiding rash decisions, and not being influenced by market panics. Beyond his business endeavors, Cohen has shown a strong commitment to philanthropy, contributing $1 billion to veterans’ and children’s health causes throughout his lifetime, as reported by Forbes.
3. David Tepper
Net worth: $20.6 billion
David Tepper has established a stellar reputation as a successful hedge fund manager, renowned for consistently delivering strong returns for his clients. Tepper is known for his purchase of a substantial stake in Bank of America Corporation (NYSE:BAC) in 2009 which made him a $7 billion profit.
Before he found his hedge fund, Appaloosa Management, Tepper gained valuable experience at Goldman Sachs (NYSE:GS), where he specialized in distressed debt and special situations. His expertise in distressed debt and special situations, honed during his time at Goldman Sachs (NYSE:GS), has been a key factor in his financial industry’s success.
2. Jim Simons
Net worth: $30.7 billion
As discussed earlier, Jim Simons was the leading investor when it came to quantitative investing. He had adopted the same investment strategy for Renaissance Technologies, the world’s largest quantitative fund. Renaissance Technologies, under this strategy, regularly buys and sells thousands of stocks annually, based on sophisticated computer algorithms. Despite its success, the fund has underperformed as compared to the market in recent times due to the sheer size it has grown to.
According to Yahoo Finance, Renaissance Technologies’ biggest 13F equity position at the end of the third quarter (2023) was Novo Nordisk A/S (NYSE:NVO) in which the fund held 15.31 million shares.
1. Warren Buffett
Net worth: $133 billion
Warren Buffett, known as the Oracle of Omaha and arguably the most famous investor, learned from Benjamin Graham and also worked for him. He purchased Berkshire Hathaway (NYSE:BRK) in 1965 and went on to turn it into a holding company for his investment portfolio. Buffett has made Berkshire Hathaway (NYSE:BRK) into an industrial powerhouse holding insurance, energy, and industrial companies.
With this, he has established his own investing strategy which is value investing. This strategy has produced extraordinary returns over the past many years. Since 1965, Berkshire Hathaway has produced an average annual return of 20%, which is almost double the performance of the S&P 500 during the same period.
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