The greatest investors have long track records of generating market-crushing returns over their investing careers. Their successes, in turn, enrich the investors who entrust them with their money. Their uncanny ability to create wealth is what makes them famous. Here’s a closer look at some of the most well-known investors in the world:
- Bill Ackman
Bill Ackman manages hedge fund Pershing Square Capital Management. He has a history of producing impressive returns. In the 18-year period from 2003 to 2021, Ackman generated a 17.1% annualized return, significantly outperforming the S&P 500’s 10.2% annualized return. Like many investors, Ackman’s performance has suffered during the stock market sell-off of 2022, with his fund falling 1.7% through the first three months of the year. However, that still outperformed the S&P 500 by about three percentage points.
One of the keys to Ackman’s sustained success is his activist investing approach. Ackman purchases large stakes in public companies that he believes would be more valuable by making certain operational or structural changes. After acquiring an influential stake, he then uses that influence to compel the company to adjust its business. Ackman sells his holdings once the company reaches its target value.
- Benjamin Graham
Benjamin Graham was an investing pioneer. He invented the concept of value investing in the 1920s — an approach that prioritizes buying stocks priced below their intrinsic values. Graham wrote two of the most famous books on investing, Securities Analysis with David Dodd and The Intelligent Investor. As both a lecturer at Columbia University and a fund manager, Graham played a formative role in Warren Buffett’s ascent as a value investor.
- Warren Buffet
Buffett might be the most famous investor of all. Known as the “Oracle of Omaha,” he worked for and learned from Graham until the value investing pioneer retired. Buffett then proceeded to establish his own investing partnership to focus on buying stakes in quality companies at fair prices.
In 1965, he purchased textile maker Berkshire Hathaway and turned it into a holding company for his growing investment portfolio. Berkshire Hathaway’s portfolio contains sizable stakes in many public companies across a wide range of industries. He’s made Berkshire Hathaway into insurance, energy, and industrial powerhouse that owns some of the world’s most iconic brands.
Buffett’s investing approach has produced awe-inspiring investment returns over many years. Since 1965, Berkshire Hathaway has produced an average annual return of 20% — almost double the performance of the S&P 500 during the same period. To put that outperformance into perspective, the stock could fall 99% and still come out ahead of the broader market.
- John (Jack) Bogle
Jack Bogle founded the Vanguard Group in 1975. He pioneered the no-load mutual fund, which, by eliminating reliance on third-party brokerages, doesn’t charge a sales commission. He also created the first low-cost index fund, called the Vanguard 500, which aimed to match the S&P 500’s performance in exchange for only a minimal fee. His approach, which has only grown more popular with the rise of exchange-traded funds (or ETFs, a type of index fund), enables investors to capture returns aligned with the broader market without paying excessive fees.