These are some of the greatest investors in the
world. These are the investors that have helped shaped the world of stock
Warren Buffet is often referred to as "The Oracle of Omaha".
Warren Buffet is one of a very few billionaires who has amassed wealth solely
through investing in stocks. Buffet's Berkshire Hathaway investment company,
headquartered in Omaha, Nebraska, has seen exceptional returns over the
decades. A $10,000 investment in Berkshire Hathaway in 1965 would have
grown to 50 million dollars today. This has made Buffet the second
richest man in the world with a net worth of over $36 billion.
Buffet's number one investment goal is to never lose
money regardless of market conditions. Buffet believes in
buying stocks trading near their tangible asset value. He also avoids
companies that have excess debt. Buffet then looks at the
companies track record for ROE and tries to forecast where the company is
going to be 10yrs from the present.
Peter Lynch is probably the most famous mutual fund manager on Wall
Street. Born in 1944, Peter Lynch started managing the Fidelity
Magellan Fund in 1978. When he started, the fund had assets of 20
million dollars. When he retired in 1990, Magellan Fund had assets of
Peter Lynch's strategy was to adjust to whatever
investment style worked at the time. He took a lot of risks over the
years yet never had a losing year. The fund had an amazing average
return of 29%. Lynch believed in investing in what you know and
to always be fully invested. Lynch normally looked for three qualities in
what he considered to be a good company: profitability, price,
and a good business model.
Check the key numbers.
1. If you are excited by a particular product or service, ensure that it
accounts for a sufficient percentage of total company sales and that it makes
a significant contribution to profits.
2. Favor companies with a strong cash position
3. Favor companies with a forward PE ratio well below their forecasted EPS
4. Avoid companies with high debt-to-equity ratios.
5. Avoid slow growers and cyclical stocks.
Benjamin Graham is often called "The Father of Value
Investing". Graham founded many of the fundamental analysis and
value-investing principals that are used today by fund managers and famous
investors such as Peter Lynch and Warren Buffet, who worked for him in his
Graham, who died in 1976, looked for what he calls a
"Margin of Safety" when investing in stocks. This is defined
by how much a stock is trading below its intrinsic value which is what the
business would be worth if it were sold today. Graham likes large
companies with strong sales since they pose less risk. He also looks
for companies that pay out dividends and are in good financial condition.
Graham looked for companies that are trading below their historical P/E
average and trading below 1.2 times book value. His investment style is
pure value investing and has proved successful over the years.
Benjamin Graham Links: