5 Gurus In The Investment World
If you’re new to investment or just want some direction, then what better place to look than to people who’ve successfully made millions in investments?
Not many successful investors share their secrets, but there are some who do. If you want to know how to do it right, research these five investment gurus who’ll tell you what to do and when to do it.
Sir John Templeton
Not every investor is born rich and made richer. John Templeton was born relatively poor and helped pay for college by playing poker. He became a millionaire by pioneering the use of globally diversified mutual funds. He is often remembered as someone who went against the herd. Shortly summarised, his 5 tips for investing were to: take calculated risks; save, don’t spend; shop for value investments; take advantage of international free markets; and minimise taxes. Chief among his advice was to save money wherever you could. He bought his first house with cash and even in later life drove a second hand Rolls-Royce.
Jim Rogers believes in investing in education and primary goods. He is a staunch advocate for investing in Asia and the primary goods sector, saying that “there’s going to be a huge shift in American society, American culture, in the places where one is going to get rich. The stock brokers are going to be driving taxis. The smart ones will learn to drive tractors so they can work for the smart farmers. The farmers are going to be driving Lamborghinis.” His book, 2004: Hot Commodities: How Anyone Can Invest Profitably in the World’s Best Market is renowned as a good investment guide.
Billionaire, philanthropist, magnate and investor, Buffett is considered the most successful investor in history the 20th Century, and with good reason. He is the CEO of Berkshire Hathaway and in 2008 he was ranked as the richest person in the world with an estimated net worth of approximately US$62 billion. His frugal nature, even now, is what he credits for his success.
Lynch is probably the best in this list to classify as a ‘guru’ because he dedicates substantial time to teaching and advising people on investment. He has coined some of the best known mantras and phrases of investment strategies, like “invest in what you know”. This is especially aimed at non-professional investors who don’t have the education or time to learn about technicalities and read long financial reports. One particularly good book aimed at teenagers is Learn to Earn which is helpful for any first time investor.
GuruFocus’ Guru of the Year 2012, Berkowitz is popular for having his worse financial year in 2011 with a loss of 32.42%, but rebounding with 36.8% in 2012. His motto is ‘ignore the crowd’, and he is convinced that the American markets hold a lot of potential – more so than Asia where everyone else is planning on investing.