The Greatest Investors of All Time
Top track records & strategies, performance versus the S&P 500, other notable investors
By studying the greatest investors of all time, investors can draw insights and learnings that may be applicable to their own life.
Some of the greatest investors are widely known. They appear and speak publicly often. They embrace fame. Others are private and relatively unknown.
The top investors also differ widely in their approach to investing. There is no silver bullet. These top investors demonstrated success by applying different strategies and investment philosophies. While some came up with new and innovative ways to invest, others picked securities almost by intuition.
Regardless of their public status and or approach to investing, one thing they have in common is that all of them have made a fortune for themselves and their investors through consistently outperforming the market.
Top Track Records
An investor’s track record consists of the their performance, reported as their compound annual growth rates (CAGR) of return, as well as the the duration over which they attained those results.
The following table shows a list of investment managers alongside their track record and strategy.
While each investor made their mark in their own unique way, there are some common themes, particularly around fundamental analysis. Many of these successful investors focused on understanding value and high quality companies.
It is also worth highlighting themes or strategies that are absent from the list.
There is no strategy focused on derivatives such as options.
There is no notion of day trading, buying and selling stocks off of whims.
There is little, if any, indication of shorting.
Technical analysis may be embedded in some of the strategies, but seems to not be the leading approach for any.
The greatest investors focused on strategies that can be applied consistently over time.
Performance vs S&P 500
These managers have all consistently outperformed the S&P 500.
Investing with any of these managers would have resulted in significant wealth creation.
Success is not about the performance of any one year or any few years. To be great is about consistency over time. Durability plays a significant role in the final outcome.
All of the above track records cover more than a decade. To emphasize the impact of duration, consider the following.
Joel Greenblatt’s track record, returning 40% CAGR over 21 years, is impressive. A $10,000 investment would have become just over $11.7 million.
On the other side, Warren Buffet’s return of 20.80% is almost half of Joel Greenblatt’s. However, Warren Buffett has kept his performance up for 55 years, wherein a $10,000 investment would have become over $326 million!
The durability of any investment strategy is critical for investment success.
Investors are best served by focusing their time and attention on honing skills that are applicable to a durable investment strategy.
Other Notable Investors
Not all investors make their track record public.
Below is a list of additional well-known investors and notable contributors to the investment community.
Closing
As these greatest investors have shown, there is no one approach to become a successful investor.
Every investor is unique. Investor’s actions are shaped and informed by each investor’s unique experiences and mindset.
To be successful in investing, investors need to find the approach and strategy that works best for them.
As any experienced investor may know, forging one’s own path and producing long-term, market-beating returns is no easy task.
Given the results these great investors have achieved, it is evident they deserve to have their place in financial history.
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Torre Financial is an independent investment advisory firm focused on emerging and established compounders.
Federico Torre
Torre Financial
federico@torrefinancial.com
https://torrefinancial.com
Disclaimer: This post and the information presented are intended for informational purposes only. The views expressed herein are the author’s alone and do not constitute an offer to sell, or a recommendation to purchase, or a solicitation of an offer to buy, any security, nor a recommendation for any investment product or service. While certain information contained herein has been obtained from sources believed to be reliable, neither the author nor any of his employers or their affiliates have independently verified this information, and its accuracy and completeness cannot be guaranteed. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, timeliness or completeness of this information. The author and all employers and their affiliated persons assume no liability for this information and no obligation to update the information or analysis contained herein in the future.
