5 Billionaire investors and their strategies
I recently heard a quote from the Tony Robbins podcast: success leaves clues.
The majority of billionaires in this country made their fortune through the stock market. By studying these individuals we can make better investment choices and make more money.
Another strategy is to follow your favorite investor and simply copy their trades. Many billionaires buy and hold stocks for the long run.
Every investor is different. What’s right for me may not be right for you. We have different dreams, different goals and different needs. Maybe we are at different points in our lives.
You maybe a baby boomer while I am a millennials. We need to make the best investment decision for our lives.
1. Warren Buffet – This is the billionaire I have studied the most and most want to emulate. His most value asset is his reputation. He became the world’s richest person through value investing and buying existing companies with great leadership that he believed in. Value investing is the art art of buying something that is undervalued by the market and holding it basically forever. The biggest businesses in his portfolio are insurance including Geico, but he has massive holdings in consumer staples like Coka Cola, Kraft Heinz and most recently Apple. His net worth is reported to be around $90 billion.
2. Carl Icahn – Is an American businessman with a close relationship to Donald Trump at one time. He is controlling shareholder of Icahn Enterprises, a conglomerate holding company. The company owns a wide variety of business. Icahn is known for being an activist investor. Investing in businesses and demanding change in structure, leadership or selling/merging the business. His actions suggest that businesses should be run as efficiently ass possible or made to be more efficient. His net worth is reported to be around $17 billion.
3. Bill Ackman – Made his billions through hedge fund investing. He is founder of Pershing Square Capital Management. Ackman is known for investing against the crowd. Sometimes the market prices too high due to overenthusiam. Or the market can price a company stock too low providing an opportunity to purchase low and sell when profitability returns. He notable for purchasing stocking in Wendy’s and then making them sell Tim Horton’s. Finding value in companies previously overlooked. His largest holdings are Chipotle, Restaurant Brands International and Lowe’s Companies.
4. David Tepper – Is a hedge fund billionaire and owner of the Carolina Panthers. He is the owner of Appaloosa Management. He has made his fortune by investing in supposedly risky investing in companies like MCI, Mirant, Conseco. He made a considerable fortune by purchasing distressed stocks and bonds during the financial crisis. When the market drops, prices readjust and they’re are lots of opportunities to be found.
5. Peter Theil – Is known for being a successful entrepreneur as one of the Founders of PayPal. He created the Founders Fund which is a venture capital firm that initially invested in Facebook and currently sits on their board. His business choices focused on venture capital and internet based companies. He has chosen to work on companies that are meeting a market need or creating an entirely new lane. Big risks have big rewards. If you use technological advancements to make something better and provide value to consumers you can be greatly rewarded.
Remember the first line of this article: Success leaves clues. These people have been successful in the stock market. The reason to study and learn about these people is to find the nuggets of wisdom their success has provided.
My goal is not to become these people or even a billionaire necessarily. I want to be the best and most successful version of myself. Find out what investment choices are right for my situation.
After studying these people one of the lessons you should take away is time. The vast majority of billionaires don’t become one overnight. It takes years if not decades. That’s decades of dedication to a plan and execution.
Another lesson to take away is team. If you are going to be dedicated to one cause or one mission you better have a good team surrounding you. You better have people that can take care of you and your loved ones. Each person on this list built an army of people to help their business succeed.
You might look at billionaires and think that they have had endless success in order to get to the point where they are. But this is not true. Every person describes had stumbles in their professional journey. Warren Buffet lost billions on the Kraft Heinz merger write down. Carl Icahn made a disaster our investment in Blockbuster. Bill Ackman invested millions into JCPenney as its stock price continued to slide and lost nearly $500million.
No one is perfect. It is not about winning every battle. But learning from your losses and making better choices over time.