We can learn a great deal about successful investment philosophies and strategies from the greatest investors that came before us. The stories about their experiences as well as success can certainly guide, help and inspire brand new investors. Studying and understanding the methods that these investors used can help beginners create an investment approach of their own and enhance the probability of their success in the world of finance. In today’s article, you will read about some of t
he greatest investors in history. If you happen to be a new investor who is looking for some good advice, keep reading to learn about the investment strategies of these investors!
Peter Lynch
Peter Lynch is known to be among some of the most successful mutual funds managers to have lived. The former manager of Fidelity Magellan Fund has had a 29.2% annualized return from 1977 to 1990. One of Lynch’s beliefs as an investor is to “invest what you know.” he thinks that because of the fact that people these days are able to spot investment possibilities in their day to day lives, individual investors have an advantage over institutional ones.
Prospective investment possibilities can be spotted by individual investors better, they can spot opportunities that other people might not, just by keeping a close eye on products they use and the businesses they are familiar with.
Ray Dalio
Many businesses and investors have adopted Ray Dalio’s “principle” Approach to management; which Dalio is known for. He is the head of what happens to be one of the largest of the world’s hedge funds and the founder of Bridgewater Associates. The hedge fund manager is known for his investment policies which are “principle-based” decision making as well as “radical transparency.”
Dalio believes in promoting an environment that encourages everyone to express their opinions and ideas in a manner that is honest and open. He also believes that in order to make better decisions in the future, one should establish a set of guiding principles.
Benjamin Graham
He is the author of the book “The Intelligent Investor” and is known as the father of value investing. Graham also mentored Warren Buffet who is the CEO of Berkshire Hathaway. Graham’s investment philosophy, which is value investing, is the act of purchasing stocks that are currently discounted to their intrinsic value. He believes that a person should focus on the fundamentals of the company, such as financials and management, rather than the short-term fluctuations of the market.
