have you ever dreamed of making lifechanging Investments have you we all have the thing is though while we all have our sight set on making mad gains not many people have actually managed to achieve that dream some people have though and this begs the question of who are the most successful investors well today we’ll tell you about the top five investors in the world how they make consistent returns and how you can learn from their success stay tuned before we begin it’s important to know that I’m not a financial adviser and nothing you’re about to see is financial or investment advice this video is purely for entertainment and educational purposes okay with that said let’s begin with a bit of context about today’s list of successful investors so the investors today are ranked on their ability to make consistent Returns on their investments in other words we’ve ranked these guys on their average annual investment returns rather than the amount of money they’ve made or their personal net worths but why is this well consider the following imagine you have $1,000 and you invest it into a stock that suddenly rallies by 10x does this mean you’re a successful investor well in part yes because you’ve made substantial gains but could you then do it repeatedly making enough money to earn the living how much research did you do before investing and how much of those gains were based on luck it goes without saying that unless you really did your homework it’s unlikely that you’d be able to replicate this and call it an investment strategy sure you could try but the chances of you consistently repeating that same scenario would be slim but there are some who have mastered the craft of doing their own research and these are the guys who can make consistent returns that others can only dream of now we’ve ranked these investors in reverse order just for fun but we’d encourage you to watch the whole way through that way you’ll get a good sense of how each investor made their fortune and how you could Implement their ideas into your own investment strategy so with that out of the way let’s dig in shall we okay in fifth place today is Bill Amman whose investment approach has earned him an average of 177% annually beating the S&P 500 average by around 7 percentage points bill is the founder and CEO of persing square Capital man management a hedge fund company based in New York he earned a Bachelor of Arts degree in history from Harvard College and got a MERS in Business Administration from Harvard Business School so pretty much your typical billionaire upbringing bill has a net worth of $ 91 billion putting him just outside the top 300 richest people in the world that must sting now bill is known for being an activist investor and is a controversial figure for context an activist investor is someone who buys a significant amount of stake in a company to advise or even Force certain business decisions bill has a somewhat unique investment approach which includes analyzing a company’s value selecting just a small handful of easy to understand companies to invest in and avoiding over diversification he also ignores short-term volatility instead focusing on investing long-term looking for potential catalysts that could cause a Stock’s price to Rally Bill’s activist investor approach has resulted in some big wins one of his earliest as the CEO of persing was buying a large stake in Wendy’s Burger chain and pressuring its management to spin off its Tim Horton’s chain bill would later exit his Wendy’s position at a considerable profit despite Wendy’s stock underperforming Tim Horton would then later merge with Burger King which incidentally Bill also had a significant stake in he really made a Whopper of a move there sorry not sorry anyway prior to persing Bill had had success in shorting the municipal Bond Insurance Association or mbia after noticing that something wasn’t quite right he believed the mortgage loans being offered were riskier than people realized and that the whole business was built on bad debt so he bought insurance that would make him money if the company went under and bet against the company’s stock 5 years later Bill’s bet would pay off as the company stock and credit rating crashed in the 2008 financial crisis however perhaps Bill’s biggest success was when persing invested in a failing Mall operator called General Growth Properties persing invested 60 million into the business and would later exit its position with a return of 1.6 billion roughly 26x the initial investment making it one of the most successful hedge fund trades in history bill has had a number of failed Investments too including Target Corporation borders group and herbal lifee limited the most infamous failure though was Ping’s investment in veent Pharmaceuticals International where its 88.5% stake in the company resulted in a loss of over $3 billion well you can’t win them all and by the way if you’re enjoying the video so far give it a boost by investing in those like And subscribe buttons and don’t forget to turn on those notifications too so YouTube gives you dividends in the form of more sweet sweet video content okay in fourth place is the name you’ll likely recognize most Warren Buffett now you might be wondering why Warren didn’t make it further up this list after all he’s arguably the most prolific investor of all time with a staggering net worth of over 145 billion dollars making him the sixth richest person in the world so what gives well despite Decades of investment success Warren’s average annual return is around 20% and recall that’s the measure we’re using for today’s video anyway Warren earned a degree in Business Administration from the University of Nebraska after being rejected from Harvard he earned a master’s degree in economics at the Columbia business school where he was taught by his future Mentor Benjamin Graham as you might already know Warren has been the CEO of Barsha Hathaway since taking it over as a failing textiles company in 1970 before reshaping it into one of the biggest conglomerates in the world and this is where most of Warren’s massive wealth comes from for context Warren originally bought shares of the company back in 1962 for $750 a pop at the time of shooting bar share price is over $692,000 per share earning him an insane return of almost 100,000x now now Warren is known for being the most prolific value investor in modern history a value investment strategy involves doing a detailed analysis of a company’s strengths in order to determine its intrinsic value if a company is deemed undervalued a value investor will buy up shares of the company and then simply wait now this is easier said than done but it’s a skill Warren has mastered over the years and is why he’s known as the Oracle of Omaha Warren has an uncanny ability to pick the very best companies to invest in a classic example is Coca-Cola which he invested in after realizing it had the most recognizable brand and a business that was destined for growth in the coming years Warren started buying up shares in 1987 building up a 6.2% stake in the company for around $1.3 billion today that position is worth around $25 billion and as a fun fact barkshire received 7 $136 million in dividends basically passive income another successful investment was American Express Warren started buying up shares in 1964 and continued after joining barkshire for a total of around $1.3 billion today that’s worth over $34 billion a great result providing you’re happy to wait 60 years now of course nobody gets it right every time and Warren Buffett is no exception in fact one of Warren’s biggest misses was ironically with Barsha Hathaway back when it was a failing textiles Company Warren bought a boatload of shares simply because they were cheap but the textiles industry was taking a beating he wasted more money trying to save the business from going under even burning through company profits he was then forced to restructure the company into what it is today hello hello it’s me guys cousin Barry I’m very very sorry to be interrupting this no doubt fascinating video but I want to tell you about the coin Bureau deals page so listen up and listen well all right this is the place where you will find all the amazing promos and discounts what you as coin Bureau viewers are entitled to so don’t be a mug go and check it out using the link below you’ll find discounts on Hardware wallets you’ll find exchange signup bonuses some of which are absolutely bleeding mental and you will find trading fee discounts there as well as well as a whole load of other goodies too and let me tell you old barington here he’s out to another dog and bone all bleeding day and night to get you these promos and discounts so you’re welcome thank you very much go and have a look Pronto have to come and have a word all right okay in third place today is well-known investor Peter Lynch whose investment approach has seen him achieve an annual average return of 29% Peter is a hedge fund manager best known for running Fidel’s mellan fund an actively managed mutual fund between 1977 and 1990 for context the mellan fund is one of Fidelity’s most popular funds primarily investing in US domestic large businesses under Peter’s management the mellan fund Grew From $20 million when he took over in 1977 to $4 billion by 1990 that is some serious growth Peter studied history psychology and philosophy at Boston College before earning an MBA from the Warton school at the University of Pennsylvania in 1968 he retired in 1990 at 46 years old with a smaller net worth than anyone else on this list but that’s not to say it was a small amount of money I mean I’m sure none of you would Grumble if you had $450 million when you retired am I right now Peter’s investment style is fairly straightforward at heart he’s a value investor but his most famous principle is to only invest in what you know and do as much due diligence as possible Peter famously grew the mellin fund through its investments in huge companies like Ford Taco Bell Dunkin Donuts and General Electric reportedly many of these Investments would go on to grow by more than 10x the initial investment although it’s not publicly known how much was invested and how much money was actually made Peter also has some regrets the most notable of which was not investing in Apple stock in his own words quote Apple was not that hard to understand I mean how dumb was I well Peter you retired early with almost half a billion dollars in the bank so not that dumb really now in second place on today’s list is George Soros a legendary hedge fund manager George is widely believed to be one of the most successful investors of all time with an average annual return of 30% on investments between 1970 and 2000 triple the S&P 500 as a young boy George left hungry in 1947 when he was just 17 after it been occupied by Germany in the second world war he moved to England where he attended the London School of Economics earning a Bachelor of Science and a master’s degree in philosophy George then later created his own hedge fund called Soros fund Management in 1970 where he remains chairman his incredible investing history has earned him a net worth of $7.2 billion now George’s investment style is slightly different to that of most billionaire investors that’s because although George does the due diligence necessary to make key investment decisions a lot of his Investments revolve around Instinct in other words George listens to his gut in fact George listens to his entire body because he’s even made investment decisions based on things like back ache sure this sounds absolutely crazy but George is the billionaire here so well who are we to argue kind of makes you wonder how many people have missed out on Mad gains after visiting their chiropractor anyway George does also use more conventional methods elsewhere he uses Market feedback to predict potential Bubbles and opportunities he also creates a forecast for what he believes will happen in the market and tests his theories with small investments before going all in once he’s satisfied he also uses a small handful of advisers to make big investment decisions taking the time to consider any potential issues isues they might raise in his time at Soros fund management George has made some massive profits both in the stock market and in Forex Trading his most famous trade by far was when he shorted the British pound in 1992 after the UK government announced plans to hike interest rates George believed this wouldn’t be enough to prop up the pound and placed a 10 billion dollar bet against the bank of England George was proven right and famously earned one billion dollars in a single day this has been labeled as one of the greatest currency trades in history but the day was so Infamous that it was named black Wednesday with George being named as the man who broke the bank of England like all investers though George has made a few mistakes along the way too the most notable hit he took was his investment in be Stern stock when he paid $54 per share just a few days later those same shares were sold to JP Morgan for just $2 a share at a loss of over 96% what’s crazy though is that George is incredibly humble about his losses he famously said that he’s only Rich because he knows when he’s wrong and says that recognizing mistakes is a source of pride in his words quote there’s no shame in being wrong only in failing to correct our mistakes wise words indeed okay folks the moment you’ve all been waiting for the investor taking the crow in today’s list is Jim Simons who was a hedge fund manager investor and mathematician who sadly passed away Jim’s investment success is unparalleled at a whopping 39% average return per year almost four times higher than the S&P 500 what’s even crazier is that Jim was able to achieve a mind-melting annual return of 66% on average before subtracting fees now Jim’s education centered around mathematics he earned a bachelor’s degree at the University of California and went on to teach the subject at Harvard not only did this give Jim a stellar teaching career but it also came in handy when he created his own hedge fund called money metrics which was later rebranded to Renaissance Technologies Jim served as the chair and CEO of Renaissance Technologies until he retired in 2010 at the time of his death his net worth was a staggering $ 31.4 billion Renaissance Technologies was famous for its Medallion fund where Jim used his maths Wizardry to create a unique quantitative trading strategy that only his team were ever allowed to know what we do know though is that his quantitative approach relies on complex models and algorithms to analyze massive amounts of data to identify patterns and anomalies in the market Jim also used a team of mathematicians and physicists for high frequency trades which usually involve placing massive trades at Lightning Fast speeds these trades took advantage of Arbitrage opportunities and would often trade with leverage to maximize gains now as with everyone else on this list Jim has had his fair share of hits and misses although it should be noted that between 1989 and 2005 the only year his Medallion fund experienced a loss was in 1989 some of Jim’s most notable wins include an investment of $67,000 in seleno Therapeutics which would grow by over 3700% to over 2.5 million Jim also invested around 3.3 million in camtech limited an investment which would turn into over $46 million he also turned a $23 million investment in coral into $167 million and a $9 million investment in ufp Technologies into $57 million and although Jim experienced minimal losses over the years there were few mistakes made along the way particularly in the early days in its first year of operation The Medallion fund saw a return of just 9% massively underperforming the S&P 500 which had gained 16% by comparison in its second year The Medallion fund actually made a loss of 4% whereas the S&P rallied by 30% Renaissance Technologies Medallion fund also took a notable 20% hit in August 2007 along with other quantitative hedge funds this 20% hit resulted in a loss of over $1 billion in a single week other larger funds suffered a smaller percentage hit of 10% but due to their size saw a loss of over $3 billion these losses were so bad that Jim worried his company wouldn’t survive and he ended up intervening directly by reducing positions despite his advisers suggesting otherwise other than these few hiccups though Jim’s Investments were overwhelmingly successful and although he’s sadly no longer with us he’ll go down in the history books as one of the best investors that ever lived albe it unknown to many so then what lessons can we learn from this incredibly successful Bunch well the first and most obvious lesson is that research is key every successful investor even outside of this list spent their time doing the due diligence necessary to make an informed investment decision so lesson number one do your own research and this relates to lesson number two take your time most successful investors will take a breather between researching a company and laying down an initial investment this is for several reasons first it helps avoid the risk that you’re investing based on emotion a great investor knows to trust their head more than their heart apart from George Soros who’ literally listened to his heart but let’s not over complicate things now second it helps to identify key ENT entry points rather than foming in at the earliest opportunity lesson three would be to pay attention to the narrative as you’ll have noticed many of the companies invested in were the best in their leagues and that’s because they had the highest chance of success in their respective Fields sure you can make faster gains with smaller companies but that carries additional risks that could result in significant losses in the long run and this ties into our fourth and final lesson be patient remember it’s a marathon not a Sprint most successful Investments make their considerable profits after a number of years and Warren Buffett is probably the best person to look at if you need evidence of this like many investors Warren knows that if a company will grow in the Long Haul then the short-term price action is almost irrelevant although it’s always good to keep an eye out for significant price dips along the way because these could present fantastic buying opportunities not Financial advice of course okay and that is just about all for today’s video folks so if you enjoyed it smash those like And subscribe buttons and turn on those notifications if you know someone this video could help take a second to share it with them thank you all so much for investing your time into watching this video and we’ll see you in the next one this is guy over and out [Music]
