scorecardresearchThis is what world's greatest investors believe about investments

This is what world's greatest investors believe about investments

Updated: 15 Jun 2022, 05:44 PM IST
TL;DR.

Some of the world’s greatest investors did not rely on timing the market. They rather preferred to study stock fundamentals, understand their valuations and then invest in them accordingly. The principle “Buy Low and Sell High” was not based on wishful thinking but backed by a sound understanding of companies and their businesses

Growing your investments involves both expertise and experience. You must be an expert enough to select the right stocks, which again comes from education and experience. 

Growing your investments involves both expertise and experience. You must be an expert enough to select the right stocks, which again comes from education and experience. 

Move on from Warren Buffett, and you will find some of the world’s greatest investors whose principles have added value to your finances while they carved a niche for themselves with their financial acumen. These greatest investors not only made millions out of their expertise and experience but also helped millions earn money who parked their money with them. 

A look at some of the world’s greatest investors who strategically traded on shares and stocks while others would rely on their gut instinct to do the same. Be it the bear pull or the bull market run, these investors have shown an uncanny ability to constantly tame the market and earn returns.

Benjamin Graham

Most investors know him as the author of the much-acclaimed book “The Intelligent Investor”. Not many are aware of how this renowned investment manager and financial educator authored many other works classified as investment classics. Globally recognized as the father of two fundamental investment disciplines—security analysis and value investing, Graham stuck to the essential principle that how investors must pay less than what the investment is worth. He relied more on fundamental analysis and sought out stocks of companies with strong balance sheets and had a good amount of cash in reserves.

John Templeton

“Contrarian style investing” became famous, thanks to this man who bought and sold stocks just like most businessmen view their trades. When the whole world reeled under the Great Depression, this man quietly made his foray into some stocks that he bought low and sold high during the Internet boom. In between, he made a few good calls that catapulted him to the list of some of the greatest investors. He then went on to create some of the largest and most successful international investment funds.

Thomas Rowe Price Jr.

This man referred to as “the father of growth investing” learned from his mistakes and turned them into great opportunities. His struggles and consequent learnings from the Depression encouraged him to embrace stocks and not run away from them. Price viewed financial markets as cyclical, which means that he looked forward to both the bear and bull runs with equal excitement. He set an example of what long-term investment means by buying some fundamentally good stocks and then staying investing in them for a prolonged period till he decided on the right opportunity to sell them at a decent profit. His investment philosophy was simple: Focus more on individual stock picking for the long run.

Jesse Livermore

He personified the famous adage, “Experience is the best teacher”. This investor unlike his peers or predecessors had no formal education or teaching in stock trading. So, he learned from his winnings and losses from trading. Livermore’s experiences gave way to trading ideas that are relevant even in today’s times. This investor joins the list of those who started at an early age and had roughly turned around $1000 by the time he was 16 years old. 

Peter Lynch

The man who managed the Fidelity Magellan Fund from 1977 to 1990 became a household name as the fund house’s assets grew from $18 million to $14 billion. His accomplishments include his ability to beat the S&P 500 Index benchmark in 11 of those 13 years. During this period, his fund earned an average return of 29 per cent. It was the ability to adapt to various situations that allowed Lynch to participate in various trades and flexibly shift between different investment styles. When it came to stock picking and deciding between which stocks to invest in, Lynch stuck to what he knew and what he could easily understand. 

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These are some of the key investment tips by Warren Buffett.
First Published: 15 Jun 2022, 05:44 PM IST