Do you know, Who are the best investors of all time?. If you are a investor or planning to invest you must read about Most Successful Investors of All Time in History. Today we'll talk about Top 5 Big Famous Investors.
Top 5 Most Successful Investors of All Time and Their Advice
Warren Buffett
Probably the first famous investor that comes to most peoples' minds is Warren Buffett. Wow, does Warren have a good life story. He's a tremendously interesting person. Check out my Warren Buffett biography.
Part of what makes Buffett so notable isn't just that he's a great investor, but the fact that he's good at breaking down his investing principles into easily understandable, bite-sized chunks of wisdom us common folk can understand. There are many great Warren Buffett Quotes out there. I've compiled some of the best ones along with comments on what we can learn from the quotes in the previous link.
Another great place to view Warren's views on investing are his annual reports. Each year I read the first 5-10 pages of his report where he gives his views on the general economy while throwing in good quotes. I then write a summary of the best parts. Here is the 2009 Berkshire Hathaway annual report and the 2010 Berkshire Hathaway annual report
Benjamin Graham
Benjamin Graham is not as famous as he should be. He trained Warren in his basic investing philosophy. Buffett has clearly stated many times that Graham's investing philosophy is the foundation upon which his own investing was built. It is a wonder more have not heard of Graham.
On top of Benjamin Graham's excellent investing prowess, he wrote the best investing book ever. I do not speak in hyperbole. Most who have read it agree with me - including, surprise surprise, Warren Buffett. Read this book if you are serious about understanding investing.
The most important point of Graham's book is to control your emotions when investing. He urges the reader on multiple times to do what their brain tells them to do based upon logical and informed thinking. Do not do what your emotions tell you to do he also states. Your emotions are your biggest investing enemy. Get the book. You can thank me later. You don't have to use my link (which gives me a very small commission). I just want more people to read this book.
Jim Cramer
Jim, Oh, Jim. What a character. He is most famous for him telling people not to sell Bear Sternes on his popular (and kind of wacky) "investing" show. He took a lot of heat for that, but I don't really think he should have, but not for the reasons you think.
He said it on a show where he's constantly spouting out speculations on stocks. Sometimes he's right and sometimes he's wrong. Anybody who was making investing decisions based upon what this man said on his crazy TV show, should not be investing in individual companies. He has said so many things that were dead wrong over the years that to single him out for one that was very wrong seems silly. By the way, just about every one else was just as wrong as him!
What people need to know is that his philosophy and his show are really not about investing. He's a speculator!. Most people get this completely wrong by lumping all speculative activity under investing.
Peter Lynch
Peter Lynch is an interesting investor. He is thought by many to be nearly as great, if not greater, than Warren Buffett. It is hard to say for sure because Peter Lynch's true investing record (when he was in charge of his mutual fund) is only about 13 years long. This is certainly not long enough to be nearly as statistically significant as Warren's 50 or so years of relatively consistent investing success.
What can be said is that Peter Lynch's investing principles share much in common with Warren's. Neither pay any attention to short-term fluctuations in the stock market. Both look at companies deeply in order to understand how they truly make money. Both heavily base their decisions upon the companies' "fundamentals" - i.e. detailed financial data. One big difference is that Peter dabbled into a wider array of techniques than Warren.
Another great thing about Lynch is that he wrote 3 excellent investing books. I've read all 3 and highly recommend them. They are easy to read, yet still informative. Definitely start with "Learn to Earn" if you're an investing newbie. Really, however, you should start with it no matter your experience level. It gives a lot of information on the history of the stock market which is incredibly useful in making intelligent investing decisions.
The next two books are "One Up on Wall Street" and "Beating the Street" (in that order). You can find them in whatever format you prefer on Amazon. Amazon is my preferred source of buying books.
John C Bogle
Bogle is the founder of Vanguard - the best place to invest money in my opinion. They are the best because their expense ratios are rock bottom. I doubt you can find any company that beats them by much.
John has written many books on how great index funds are. He's right and I like John's philosophy, but his books are a little repetitive. I would put his books low on my priority list if I were you. Also, once you've read one of his books, don't read anymore.
Which famous investors should us laypeople listen to?
Warren Buffett, John C. Bogle, Graham, Peter Lynch - in that order. Simple enough? Warren Buffett doesn't have a lot of writings out there, but you can find a few pages of his thoughts every year in Berkshire Hathaway's yearly shareholder letters. I also give a synopsis of his Berkshire Hathaway 2009 stockholder letter (2010 synopsis coming soon). Benjamin Graham's most important book is The Intelligent Investor. This will give you the same basic investing guidelines as Warren Buffett.
Peter Lynch's and John C. Bogle's books are a little better if you're a total beginner. Graduate to Graham's book. Eventually, however,.
If you're serious about investing you HAVE to read The Intelligent Investor.
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