Many people have always dreamed of becoming a billionaire. Common people would only dream and would think that it’s impossible, while other people will make it real. Just like these famous investors, you need to have persistence, determination, and discipline when it comes to investing.
These individuals are like the rock stars of the financial world. Only the greatest investors have all made a fortune off their success. Admired by the entire world because of their ingenuity, they have mastered the art of investing, making the stock market their canvas to create a masterpiece.
Each investor has his own unique investment strategy and philosophy he applies in trading. They either came up with new and innovative ways in trading, or picked securities almost entirely by instincts. While some people would imitate their approach, they will soon find out that it’s not easy as it looks to copy their ingenious minds.
Read on to find out how these famous investors make huge ripples with their small maneuvers, so you too can learn their secrets to become a rock star in your own time.
Templeton started borrowing money and invested it in 100 companies, most of which were almost about to go bankrupt. However, he made a habit of never spending more than $100 per share. His bold moves paid off and ended up selling all but 4 of the companies for a substantial profit. He followed this strategy throughout his career, picking stocks that were widely ignored by other brokers and turning small investment into millions.
He created some of the world’s largest and most successful international investment funds. Money Magazine called him “arguably the greatest global stock picker of the century.” Further, Queen Elizabeth II knighted him for his numerous accomplishments.
Also known as the Oracle of Omaha, Warren Buffet is one of the most well-known names for being the wealthiest and top investor in the world.
He is known for his frugal lifestyle, which he applies into his business practices. His philosophy is simple and revolves around two rules:
- Don’t lose money.
- Don’t forget rule number one.
One of his investing secrets is to take the quality and the price of a company into consideration. Look at balance sheets, listen to conference calls, and believe in the management team. If you don’t feel confident in the company, don’t buy it.
Carl Icahn is one of the most famous investors of our time. He is a specialist in buying up companies he thinks are poorly managed, before turning them around for a quick profit.
His strategy is about getting on board in companies he invests in, then cleans house. He’ll either get the company making money again or break it up and sell the profitable parts.
He is famous for the Icahn Lift. It is a phenomenon which rumors of his involvement are enough to get other investment managers buying up a share of a said company, raising the stock price.
Often described as a “chameleon,” Peter Lynch adapted to whatever investment style worked at the time. He managed the Fidelity Magellan Fund from 1977 to 1990, and the fund’s assets grew from $20 million to $14 billion.
He has a philosophy that could allow new investors to out-perform Wall Street, and that is doing your due diligence. Lynch would only invest in stock he understood by doing an extensive and thorough research. He was knowledgeable about the markets and its volatility. He made sure not to take the long shots and learn quickly from his own mistakes.
A successful hedge fund manager of all time, returning 30% annualized during his time running the Quantum Fund. George Soros made billions betting on global macro trends, including a $1 billion profit he made in one day on a bet against the British pound back in 1992.
Soros is considered an old school, and embraces the unpredictable nature of investing. He specializes in taking highly leveraged bets or making investments using borrowed cash, to capitalize on macroeconomic trends. He does his research first before else, then follows his gut instinct.
It’s true that being a billionaire is an impossible dream to reach. Everyone has dreamed about it, but no one dared to try. If it’s so easy to become a billionaire, then every single person in the world should be flying in jets, holding the leash of their pet Tiger. It can be difficult, and just like these famous investors, they are normal people like you. Take one step at a time, because no one is an instant rock star overnight. If you believe you have what it takes, then someday you’ll be making a name for yourself to be included in the list of successful investors.
Read more: 7 Steps to a Successful Journey in Investment.
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