Today, there are several investments to achieve financial goals and benefits, such as investing in businesses, stocks, real estate, and other assets. The investment can be a short-term or long-term investment, depending on the goal of the investors. In order to succeed, the beginner or investor should learn from the successful investor, which can help them improve their investment. This article will discuss the top 5 richest investors in the world, whom you should follow, and learn how they achieve success in the financial world.
List of Contents
Top 5 Richest Investors in the World
1. Warren Buffet
Net worth: $103 Billion
Position: Founder & CEO of Berkshire Hathaway
AKA: The Oracle of Omaha
Background
Warren Buffet started his journey with investment when he was only ten years old, and he bought his first stock at the age of 11. The book “1000 Ways to Make $1,000” served as inspiration for him, and he used the knowledge he gained from it to launch his small business, which included selling magazines and Coke bottles. Through his effort, he can buy a 40-acre farm after ending high school. Now, he is the CEO of Berkshire Hathaway, and he has become one of the richest investors in the world, with a net worth of $103 billion.
Buffet is famous for his value investing strategies for his long-term investments, which include buying a high-quality business with strong fundamentals at affordable rates. He is known for his charitable endeavors as well, with over 99% of his wealth donated to charity.
Examples of Notable Investment
Warren Buffet made some significant investments, including in Coca-Cola, American Express, Apple, Goldman Sachs, and Dairy Queen.
2. Ray Dalio
Net worth: $19.1 billion
Position: Hedge Fund Manager
AKA: The Founder of Bridgewater Associates
Background
Raymond Thomas Dalio started to work several jobs when he was young, such as mowing lawns, shoveling snow, running a paper route, and being a caddie. While working as a caddie at the Link Golf Club, he was invited to take a summer job at a trading firm. He began to invest at the age of 12 by purchasing $300 in shares of Northeast Airlines, and he tripled his investment after the airline merged with another company. Dalio becomes one of the richest investors, with a net worth of $19.1 billion.
Dalio is known for his investment philosophy, which focuses on being transparent and trying to challenge assumptions in order to get better results. Today he has written several books, his famous book is “Principles: Life and Work” which guides readers on his principles for success. Additionally, he is one of the philanthropists who donated millions of dollars to schools, hospitals, and others.
Examples of Notable Investment
Since he is a hedge fund manager and investor, Dalio has made a number of investments, including in gold, Chinese tech stocks, US Treasuries, emerging markets, and Bridewater’s All Weather Fund.
3. George Soros
Net worth: $6.7 billion
Position: Investor, Hedge Fund Manager, Author, Philanthropist
AKA: The Legendary Investor and Philanthropist
Background
George Soros was born in Budapest, Hungary, and immigrated to England in 1947. After graduating from the London School of Economics, he started to work as a trader in New York City and created his hedge fund, Soros Fund Management, in 1969. Now, he has become one of the richest investors in the world, with a net worth of $6.7 billion
Soros was known for his investment strategies, which were often based on his reflexivity theories and his belief that efficient markets come with inefficiencies. In addition, he started the Open Society Foundation to support many causes and donated billions of dollars for human rights, education, and democracy. He has also been involved with various political campaigns and causes.
Examples of Notable Investments
During his career, George Soros made a number of well-known investments, such as the Quantum fund, Facebook and Google, gold, emerging markets, and open society.
4. Carl Icahn
Net worth: $18.2 billion
Position: Founder of Icahn Enterprise
Aka: The Activist Investor
Background
Carl Icahn used to study philosophy at Princeton University, but he dropped out to join the army. After joining the army, he started his career as a stockbroker on Wall Street in 1961. Later, he generated his firm name, “Icahn Enterprises,” in 1987. Over the years, he became famous in the investing market with his investing approach and ability to turn around troubled businesses. With his ability to succeed, Icahn becomes one of the richest investors, with a net worth of $18.2 billion.
Icahn was involved in many high-profile corporate battles for many years, and he gained renown by joining RJR Nabisco in the 1990s, which sparked a bidding battle. In recent years, he has taken a significant position in the companies, pushing them to implement change to raise shareholder value. He has been involved in the activist campaigns of several companies, such as Apple, eBay, and Netflix.
Along with his business career, Icahn donated millions of dollars to medicine, research, and education. He has also pledged $200 million to create the Icahn School of Medicine at the Mount Sinai Health System in New York City.
Examples of Notable Investment
Since Carl Icahn is known for his aggressive investing style and willingness to make changes for better value, he has made some notable investments familiar to investors nowadays, including Apple Inc., Herbalife Ltd., Dell Inc., Netflix Inc., and Hertz Global Holdings Inc.
5. David Einhorn
Net worth: $1.7 billion
Position: Founder of Greenlight Capital
Aka: The Value Investor
Background
David Einhorn was born in New Jersey, United States, and graduated with a bachelor’s degree in government from Cornell University. After graduating, he started his job at Donaldson and Lufkin & Jenrette. Later, he founded his own hedge fund named “Greenlight Capital,” which became popular and one of the business’s most successful hedge funds. With a net worth of $1.7 billion, Einhorn becomes one of the richest investors in the world.
Einhorn is notable for his willingness to take contrarian stances and his value-oriented approach to investing. Over the years, he has made highly profitable investments, and as a result, he was recognized for his achievements by being included in the Forbes “30 under 30” and Fortune’s “40 under 40” lists. In addition, he also provides commentary on financial and economic issues and has written an investing book about his investment philosophy called “Fooling Some of the People All of the Time: A Long Short Story.”
Besides his business career, Einhorn is a philanthropist who created the Einhorn Family Charitable Trust to focus on education, health care, and social justice issues. He is also one of the directors on the Michael J. Fox Foundation board, dedicated to finding a cure for Parkinson’s disease.
Examples of Notable Investments
David Einhorn has made several notable investments, including those in Lehman Brothers, Apple, General Motors, Green Brick Partners, and Consol Energy.
Conclusion
It can be seen that many famous investors are not only focusing on their business careers but also on charitable endeavors as well. It is important to learn from the experiences of successful investors who will provide you with suggestions about investing and how to reduce the risk that might occur during investment. The knowledge learned from successful investors could help beginners follow their steps and start to achieve their goals and success. It is not too late to learn and start new steps. Do not hesitate to consult with a professional investor before joining the investment industry.
FAQs
According to the top five richest investors in the world, the key elements for successful investing include finding undervalued businesses with strong fundamentals, making long-term investments, concentrating on businesses with dependable teams, and making investments in highly innovative businesses.
Investing in high-risk investments, failing to diversify their portfolio, and making an investment decision based on emotions are common mistakes new investors make.
Some strategies help minimize investment risk, including diversifying the portfolio across multiple assets and industries, investing in reliable companies with consistent earnings and cash flow, and doing more study before making investment decisions.
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- From Zero to Hero: How to Start Investing for Beginners
Read more: Investing
Sources: Forbes.com