There is no simple, straightforward strategy to make big money in the market. Each enermous investors has their own set of strategies and philosophies that helped them create stupendous wealth. And some of them went on to become legends by consistently outperforming the markets for long periods. Based on investopedia, here are the enermous investors.
John Neff
In 1964, Neff joined Wellington Management Co. He stayed with the company for more than 30 years, managing three of its funds.
His preferred investment tactic involved investing in popular industries through indirect paths. And also he was considered a value investor as he focused on companies with low P/E ratios and strong dividend yields.
For about 31 years, he ran the Windsor Fund (ending in 1995). it earned a return of 13.7%, versus 10.6% for the S&P 500 over the same time span. This amounts to a gain of more than 55 times an initial investment made in 1964.
Jesse Livermore
Jesse Livermore had no formal education or stock trading experience. He was a self-made man who learned from his winners as well as his losers.
It was these successes and failures that helped cement trading ideas that can still be found throughout the market today. Livermore began trading for himself in his early teens. He had reportedly produced gains of over $1,000, by the age of fifteen. It was big money in those days.
Peter Lynch
From 1977 to 1990, Peter Lynch managed the Fidelity Magellan Fund. He successfully collected the fund’s assets grew from $20 million to $14 billion. More importantly, Lynch reportedly beat the S&P 500 Index benchmark in 11 of those 13 years, achieving an annual average return of 29%.
Often described as a “chameleon,” Peter Lynch adapted to whatever investment style worked at the time.Yet, when it came to picking specific stocks, Peter Lynch stuck to what he knew and/or could easily understand.
Warren Buffett
The last but not the least enermous investors is Warren Buffet. He is referred to as the “Oracle of Omaha”. Warren Buffett is viewed as one of the most successful investors in history.
Following the principles set out by Benjamin Graham, he has assembled a multibillion dollar fortune mainly through buying stocks and companies through Berkshire Hathaway.
Those who invested $10,000 in Berkshire Hathaway in 1965 are above the $50 million mark today.
Buffett’s investing style of discipline, patience, and value has consistently outperformed the market for decades.
READ ALSO: The Enermous Investors (Part 1)
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