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Attention Investors |
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Warren Buffett
Born: Omaha, Nebraska in 1930
Employer: Berkshire Hathaway Chairman
Most Famous For: A $10,000 investment into Berkshire Hathaway when
Buffett took control in 1965 would be worth over $50 million today. By comparison,
$10,000 in the S&P 500 would have grown to only $500,000.
Less Celebrated For: Buffett is considered by many to be a real
Scrooge. This is mainly because he has not been particularly charitable, despite
his $36 billion net worth.
Quote: "If past history was all there was to the game, the richest
people would be librarians."
Background: Also known as "The Oracle of Omaha," many people consider
Buffett the greatest investor ever. Even with all the success and accolades, he
still lives in the house he bought for $31,500 over 40 years ago.
What's most intriguing about Buffett Is that he is one of the few extremely rich
people who has amassed wealth solely through investing in stocks. His investment
strategy of discipline, patience and value consistently outperforms the market and
his moves are followed by thousands of Investors worldwide.
He is also famous for not joining the infamous tech/Internet stock rally in the
late 1990s, stating that he refuses to invest in companies that he can't visualize
10 years down the road.
Great Buffet Quotes
"Rule No.1 : Never lose money. Rule No.2 : Never forget rule No.1."
"Someone's sitting in the shade today because someone planted a tree a long time
ago."
"Wall Street is the only place that people ride to in a Rolls Royce to get advice
from those who take the subway."
"Risk comes from not knowing what you're doing."
Peter Lynch
Born: United States in 1944
Employer: Former Fidelity fund manager, today he is vice-chairman
of Fidelity
Most Famous For: When he started managing the Fidelity Magellan
Fund in 1978, it had assets of $20 million. When he retired in 1990, it had assets
of $14 billion.
Less Celebrated For:Some people were none too pleased when Lynch,
one of the greatest, retired at the tender age of 46.
Quote:"Go for a business that any idiot can run - because sooner
or later, any idiot probably is going to run it."
Background: Lynch is arguably the world's most famous mutual fund
manager. Often described as a chameleon, he adapted to whatever investment style
worked at the time (growth vs. value). He was one of the first to uncover hidden
gems such as Dunkin' Donuts, Pier 1 Imports and Taco Bell. People began to criticize
Lynch once his fund surpassed $1 billion in assets in the early 1980s, but the fund
rose to $13 billion less than seven years later. He admits to taking plenty of risks
while managing the Magellan Fund, but he never suffered a losing year.
According to Value line, "a $10,000 investment into Magellan in 1978 and then adding
$100 per month, would add up to over $1 million, in 20 years!" While at the helm
of Magellan, Lynch achieved an average annual return of 29% a year.
John Templeton
Born: Winchester, Tennessee in 1912
Employer: Founder of the Templeton Group
Most Famous For:Created some of the world's largest and most successful
global investment funds using his independent investment strategy.
Less Celebrated For:More recently, his funds have failed to provide
the astounding gains his followers were used to, partly due to the recent Asian
recession.
Quote:"The time of maximum pessimism is the best time to buy and
the time of maximum optimism is the best time to sell."
Background:Templeton is a true pioneer of the global mutual fund
industry. He has led the charge for teaching investors to explore the world for
great investments. Investing overseas was virtually unheard of until investors caught
on to Templeton's strategy. Today, the Templeton Group's combined assets exceed
$25 billion.
Besides pioneering global investing, a great example of his independent investment
strategy occurred in 1939. With the outbreak of war looming, a twenty something
Templeton bought every stock selling for under $1 per share on the major exchanges.
Within four years, he had quadrupled his money.
Templeton is one of the strongest proponents of diversification. He once stated
that "the only investors who shouldn't diversify are those who are right 100% of
the time."
Another one of Templeton's success stories is a man by the name of Leroy Paslay.
He was one of Templeton's earliest investors, giving him $65,500 to invest in 1954.40
years later, Paslay was worth over $37 million.
After making billions through his innovative approach to investing, he has now become
one of the world's greatest philanthropists. In 1987, he founded the $1/4 billion
John Templeton Foundation.
John (Jack) Bogle
Born: Montclair, New Jersey In 1929
Employer: Founder and Chairman of The Vanguard Group
Most Famous For: Often referred to as the father of index fund
investing, he's the creator of the first S&P 500 Index fund.
Less Celebrated For: Admits that mutual funds "haven't been up
front with investors - top fund performance has always been followed by mediocre
returns",
Quote: "If you have trouble imagining a 20% loss in the stock market,
you shouldn't be in stocks."
Background:Bogle is considered a pioneer in the mutual fund industry.
He Introduced the first S&P 500 index fund ever - the Vanguard 500 Index - which
debuted in 1976. On countless occasions, he has stated that investors shouldn't
be so worried about trying to beat the markets and should join the markets instead.
His index funds were characterized as low cost and low maintenance and allowed several
mil/ions of investors to participate in the greatest bull market ever.
He rejects "today's emphasis on witchcraft and mystery" in Investing, and supports
a "back to basics" strategy. In his opinion, these are the investment principles
which have proven to be successful for over 75 years
Jim Rogers
Jim Rogers grew up In Demopolis, Alabama
He got started In business at the age of six, selling peanuts and soft drinks at
Little League games.
He graduated from Yale University and studied philosophy, politics and economics
at Oxford University, where he discovered his love for Wall Street and Investing.
Has written various books on investments. To name a few are: Investment Banker which
was also acclaimed as the best seller. He also wrote books such as New Money Masters,
Market Wizards and Money Masters of our Time.
After a spectacular career as a hedge fund manager and investor her retired at the
age of 37 and made investments in his own funds.
He is also a visiting finance professor at Columbia University.
He is a regular contributor to Worth magazine and a business
correspondent for Fox News' Your World with Neil Cavuto, in addition to
CNBC. His forecasts are featured In Barron's, Fortune, The Wall
Street
Journal, The Financial Times, TIME, The Washington Post
and many other domestic and international publications.
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