20 Greatest Investors of all time | Famous & Historical Legends

20 Greatest Investors of all time | Famous & Historical Legends

Investing into the stock market has attracted the greatest minds in History! Many with their own unique investing style, so in this post we’re going to take a trip back through time and reveal some of the most famous & Historical investors.

Many are still active today, some are no longer with us, but in either case their immense timeless wisdom lives on & is still extremely relevant today!

After all despite the increase in technology & computer trading there is one common factor which has been present in making decisions in the stock market throughout the ages, PEOPLE.

Where there are people there is volatility & psychological biases all which create opportunities for profit. 

Greatest Investors of all time Quotes Gallery

Who is the Greatest Investor of All Time?

1. Jim Simons

In terms of pure investment returns, Jim Simons is the greatest investor of all time. Simons Medallion Fund averaged an incredible 71.4% compounded return annually between (1994 and 2014). This puts him ahead of Warren Buffett’s investment conglomerate Berkshire Hathaway which earned “only” 20% compounded returns annually. 

Both are incredible returns massively outperforming the S&P 500 index which averaged a 10.2% annual return.

INVESTING LEGENDS GREATEST INVESTORS RETURNS STOCK MARKET JIM SIMONS OUTLIER

INVESTING LEGENDS GREATEST INVESTORS RETURNS STOCK MARKET JIM SIMONS OUTLIER. Jim Simons (renaissance technologies) Vs Warren Buffett (Berkshire Hathaway) Credit: www.motivation2invest.com/Jim-Simons

The Scatter plot i’ve created above plots outperformance over the S&P 500 (X Axis) vs Number of Years. It is clear to see that Jim Simons is a true outlier in terms of returns.

However, Warren Buffett has an incredible return over such a long period of time nearly 60 years! 

Why this is not a fair fight?

Jim Simons is a “Quant Investor” and advanced Mathematician who has created a computer model & algorithm for trading at Renaissance technologies. So although his firm has generated better returns than any other investor, the computer algorithm is the real success story.

 

Jim Simons Quotes Gallery

2. Warren Buffett 

Warren Buffett…the man, the myth, the legend is one of the best investors of all time & a wealthy billionaire. He is the epitome of a classic Value investor.

Valuing Companies not stocks, with an extremely disciplined approach to his trades. His strategy focuses on risk minimisation & long term investing gains. 

Investment Returns:

This has paid of substantially with an annualised compounded portfolio return of approximately 20% since 1964, for his investing conglomerate Berkshire Hathaway. Overall returns from 1964 to 2021 = 2,855% (approximately).

If you invested $1000 in 1964 into Berkshire, that would be worth an incredible $28,855. Close to a 29X Return!

Warren Buffett Quotes (8)

Warren Buffett Quotes (8). You can use this image if credit with clickable link: www.Motivation2invest.com/Warren-Buffett-Quotes

Warren Buffett is not just a great investor but also an incredible teacher, his wisdom, Witt and life Lessons are Legendary. Many of the greatest investors we see today stood on the shoulders of Buffett and credit him for their success. 

 

Warren Buffett Quotes Gallery

3. Ray Dalio

Ray Dalio is the Billionaire founder of the worlds largest hedge fund, Bridgewater associates. 

Dalio got his first taste of investing during the “nifty fifties” this was a major bull market and everyone was talking about stocks. 

He overhead many conversations while caddying at a golf club & thus saved up his wages before investing.

He bought his first stock, North East Airlines which immediately increased in price. After which Dalio was hooked on investing & fell in love with the opportunities.

Fun Fact: The 1950’s was a strong bull market, as it followed World War II thus pent up consumer demand was released. 

Ray Dalio Quotes MOTIVATION 2 INVEST (6)

Ray Dalio Quotes MOTIVATION 2 INVEST (6)Credit: www.Motivation2invest.com/Ray-Dalio

Ray Dalio’s investing Strategy has a big focus on Investing internationally and diversification across stocks, industries, asset classes etc.

all weather portfolio ray dalio 3D

all weather portfolio ray dalio 3D. Credit: www.motivation2invest.com/Ray-Dalio

Dalio is a major bull on investing into Gold, he states “If you don’t own gold, you know neither history or economics”.

This is contrary to Warren Buffett who doesn’t invest into gold as it “doesn’t produce anything”, Buffett prefers farmland.

 

Ray Dalio Quotes Gallery

4. Benjamin Graham (1894 to 1976)

Benjamin Graham (1894- 1976)  is known as the “Father of Value Investing”, a pioneer of Deep Value investing & the incredible Warren Buffett’s mentor! 

Graham wrote the book the intelligent investor of which his prodigy the Legendary Warren Buffett widely cites as the “best investing book ever written”. Graham also wrote the bible of value investing “Security Analysis”. 

Warren Buffett studied under Benjamin Graham at Columbia University and was his top student (no surprise).

Fun Fact: A series of unfortunate events led to Buffett’s encounter with Graham. As one of the richest people on this planet was TURNED DOWN by Harvard Business school in 1950.

Buffett stated: “I spent 10 minutes with the Harvard alumnus who was doing the interview, and he assessed my capabilities & turned me down,” Then Buffett Realised Graham was at Columbia and having read his books multiple times cover to cover he rang him up

“I thought you were dead! If not it would be great to study with you” , Buffett even offered to work for free for Benjamin Graham in his original investing partnership. 

Benjamin Graham Quotes The Intelligent Investor You can use this image if credit with clickable link (do follow) www.Motivation2invest.com/benjamin-graham-quotes

Benjamin Graham Quotes The Intelligent Investor You can use this image if credit with clickable link (do follow) www.Motivation2invest.com/benjamin-graham-quotes

Investment Returns:

Benjamin Graham averaged a compounded return of approximately 20% annually between 1936 to 1956. During the same period the general market returned just 12.2% annually on average.

Investment Strategy:

Benjamin Graham’s deep value investment strategies although simple were game-changing for those who adopted them, concepts include:

  • Recognising a Stock is a portion of a Business
  • Margin of Safety (Valuing a company then buying below than fair value) 
  • Mr Market (The concept that the Market is governed by a bipolar person which fluctuates from Fear to Greed) 
  • Deep Value Investing. 

Is Benjamin Graham still relevant today?

Yes! The principles outlined in books such as the Intelligent investor are still very relevant today for both business and investing, although the book is not so easy to read. 

The strategy of deep value investing has become more difficult, this is due to a few factors, from the increasing availability of strategy information, to network connection of the stock market, algorithmic trading and more. 

Many Stock Market inefficiencies tend to be plugged extremely fast these days which makes it harder to find opportunities. 

Even Warren Buffett evolved Benjamin Graham’s traditional deep value investing style to pay more for “wonderful companies at fair prices” .

This was partly thanks to the influence of another legendary Investor, who will discuss next Charlie Munger. 

 

Benjamin Graham Quotes Gallery

5. Charlie Munger

Charlie Munger is a famous historical investor with a net worth of $2.2 Billion. Munger is an exceptional value investor with great Witt, Wisdom & no filter when it comes to saying what he thinks!

Munger is also a great friend & Business partner of Warren Buffett. Buffett often jokes about himself & Munger knowing “what each other are thinking” like former Siamese Twins & they used speak on the phone almost daily. 

Munger is credited to have helped Warren Buffett invest into “Wonderful companies at fair prices”, rather than just deep value investments, using the Benjamin Graham method.

Buffett had traditionally done cigar butt strategy investing, where he looked to buy companies trading below net asset value, with “one last puff” in them. 

Charlie Munger Quote 8 MOTIVATION 2 INVEST (1)

Charlie Munger Quote 8 MOTIVATION 2 INVEST (1)

How did Charlie Munger Meet Warren Buffett?

Warren Buffett and Charlie Munger first met in 1959.

The famous investors were introduced to each other at a dinner, with the referral coming from a popular family doctor of in Omaha. 

The story is Legendary, In 1957 Doctor Edwin Davis had a meeting with Buffett and agreed to allow him to manage his money…because he reminded him of someone named “Charlie Munger.”

In a CNBC Interview, Buffett stated:
“Well, I don’t know who Charlie Munger is, but I like him”

The Doctors wife, Dorothy made it her mission to connect Buffett and Munger. Two years she managed to connect the two at a dinner in 1959.

Charlie Munger, who was then a lawyer in Los Angeles, was visiting Omaha after his father, Alfred had passed away.

The two immediately made a connection and the rest of the room melted away as Buffett & Munger talked for hours. 

 

Charlie Munger Quotes Gallery

6. Philip Fisher

Phil Fisher is a great Historical Investor who pioneered the strategies of growth stock investing & a more qualitative approach to investing.

Fisher Pioneered the “Scuttlebutt” investing strategy which involves speaking to Management, Customers & even competitor companies in order to gain a special insight into a businesses quality.

Fisher looked to buy great businesses, with high returns on capital and to hold them long term, as opposed to repeatedly buying low & selling high.

Phil Fisher also focuses on Customer insight, Marketing & sales processes in his book he states:

 In the business world customers simply do not beat a path to the door of the man with the better mousetrap.

In the competitive world of commerce it is vital to make the potential customer aware of the advantages of a product or service.

This awareness can be created only by understanding what the potential buyer really wants (sometimes when the customer himself doesn’t clearly recognize why these advantages appeal to him)

and explaining it to him not in the seller’s terms but in his terms.” – Common Stocks & uncommon profits. 

Phil Fisher has a very similar approach to a modern day Legendary Investor Nick Sleep whose investment partnership produced compounded returns of 20.8% with over 40% of the fund in just one stock, Amazon!

This is the power of investing into long term compounders with great Managers.

Nick Sleep Nomad Investment Partners Letters Quotes

Nick Sleep Nomad Investment Partners Letters Quotes. Returns if invested into Tesla Stock or Amazon. Source: Motivation2invest.com

Warren Buffett is often considered to be part Ben Graham and part Phil Fisher.

Buffett stated in a 1995 Berkshire Hathaway shareholder meeting

“I was very influenced by Phil Fisher when I read his books in the 1960’s, they are terrific books”

“I think of myself as 100% Ben graham and a 100% Phil Fisher [at the same time]

It takes more business experience to apply Fishers approach compared to Ben Graham

Ben was more of a teacher as he had no urge to make alot of money” 

Charlie Munger is also quoted to share fond thoughts on Phil Fisher at the same annual meeting in 1995.

 

Phil Fisher Quotes Gallery

7. Sir John Templeton

Sir John Templeton (1912-2008) is one of the greatest contrarian investors in history. Templeton is most famous for making bold bets against the consensus and being right! 

The Ultimate Contrarian (World War 2) Investment:

An extreme example of this includes a bold investment during World War 2! 

In 1939, WW2 was just beginning and the stock market crashed as most people were in fear (understandably).

However, Templeton saw this volatility as an opportunity.

John Templeton MOTIVATION 2 INVEST Quotes (1)

John Templeton MOTIVATION 2 INVEST Quotes (1)Credit: www.Motivation2invest.com/John-Templeton-Quotes

Templeton borrowed thousands to buy 100 shares of EVERY STOCK selling for less than one dollar, during Stock Market Crash.

At that point one third of the companies faced bankruptcy, but he held his shares firm. After which all but four stocks rebounded, which made him an incredible 400% return in just 4 years! 

John Templeton MOTIVATION 2 INVEST Quotes (1) Credit: www.Motivation2invest.com/John-Templeton-Quotes

John Templeton MOTIVATION 2 INVEST Quotes (1) Credit: www.Motivation2invest.com/John-Templeton-Quotes

The Time of Maximum PESSIMISM is the Best time to BUY, the time of maximum OPTIMISM is the best time to SELL.

When stocks crash and fear grips the stock market, people perceive a greater risk. However, stocks are actually LESS RISKY as they are cheaper to buy…effectively stocks are on sale.

The same is true when stocks go up and euphoria is prominent, the perception from the media is now you should buy, when actually that is the most dangerous time to buy and the best time to sell. 

This is very similar to Legendary Investor Warren Buffett’s quote: “Be fearful when others are greedy and greedy when others are fearful”.

This sounds easy on paper but during the heat of a stock market crash it requires immense courage and independent thinking to buy when others are selling in fear. 

 

John Templeton Quotes Gallery

8. Peter Lynch

Peter Lynch is one of the greatest investors in History who has also inspired a generation (including myself!). 

As the manager of the Magellan Fund at Fidelity Investments, Lynch averaged an incredible 29.2% annual return! Between 1977 and 1990.

This was consistently more than double the S&P 500 stock market index and thus this was the best-performing mutual fund in the world.

Lynch believes the average retail investor can get “one up on Wall street” which was the name of his famous book. 

Peter Lynch Investing Quotes Wall Street Legend (5)

Peter Lynch Investing Quotes Wall Street Legend (5). Credit: www.Motivation2invest.com/Peter-Lynch-Quotes

Peter Lynch is also a great teacher similar to Warren Buffett . Lynch has the incredible skill of being able to simplify an investment strategy enough for anyone to understand.

Famous Value Investor Mohnish Pabrai, tells a story of how reading Peter Lynch’s books got him into investing. 

Mohnish was running an IT services company and decided to pick up one of Lynch’s books to read on a flight. He loved the book and saw many synergies which would help him to run his own business better.

Then decided to read another one of Lynches books,  Mohnish stated:

I was then out of Peter Lynch Books, but Lynch talked about this guy named Buffett in the book, so then I started reading his books

 

Peter Lynch Quotes Gallery

 

9. George Soros 

George Soros is a legendary Investor who is most famous for his bold Macro economic predictions & currency trades.  Soros is most famous for making $1 Billion in a single day when his bet against the British pound paid off!

This was called the “greatest Trade of all time” and he executed this with his former business partner & Trading Legend Stanley Druckenmiller. 

Investing Strategy:  Contrarian, Economics, Trader, Top Down

George Soros Quotes Motivation 2 invest (3). Credit: www.Motivation2invest.com/George-Soros-Quotes

George Soros Quotes Motivation 2 invest (3). Credit: www.Motivation2invest.com/George-Soros-Quotes

George Soros Quotes Gallery

10. Stanley Druckenmiller

Stanley Druckenmiller is a Famous Investing great with an estimated net worth of $6.6 billion.

Druckenmiller is most famous for executing what has been called the “greatest trade of all time” in which he made up $1 Billion in a single day!

This was accomplished by a bold bet against the British pound during the early 90’s when Stanley Druckenmiller was at the Quantum Fund with another Legendary investor George Soros

Stan Druckenmiller and George Soros (Quantum Fund)

Stan Druckenmiller and George Soros (Quantum Fund)

Stan Druckenmiller Quotes Gallery

11. Sam Zell 

Sam Zell is one of the greatest Real Estate investors of all time! Known as the “King of Real Estate” he has an net worth of $6 Billion according to Forbes. 

Zell is also nicknamed the “Grave Dancer” as he buys when everybody in the real estate world is getting killed! 

How to build a Real Estate Empire from Scratch?

Zell has humble beginning as the son of Polish Emigrants which fled Nazi Germany in 1939. From young it was clear Zell had a strong entrepreneurial tendency.

As a boy he started buying Playboy Magazines in the city and selling them to friends for a massive 600% mark-up! 

Sam Zell Quotes Investing Real (18)

Sam Zell Quotes Investing Real (18).Credit: www.Motivation2invest.com

In college, he asked the landlord of a 15 unit student housing building if he could manage the property in exchange for a free room & board.

Zell learnt a lot from the experience about refurbishing properties and he began buying distressed properties, renovating them and then renting to students. 

Afterwards Zell branched out from student rentals to commercial properties to
other residential units, resorts, even manufactured homes.  Zell began
incorporating his different types of holdings into real estate investment
trusts.

He organized his different real estate investments into various trusts which allowed him to sell them off as he wished. A notable example is the whopping $36 billion sale to investment giant Blackstone.

Sam Zell Quotes Investing Real (11)

Sam Zell Quotes Investing Real (11). Credit: www.Motivation2invest.com

Sam Zell Quotes Gallery

 

 

12. Carl Ichan

Carl Icahn is a legendary activist investor who’s brash & outspoken Strategy of investing has made him a billionaire, with an estimated net worth of $16.7 Billion. 

As an activist investor Ichan analyses poorly run companies where he believes a change in management strategy will improve the company & increase shareholder value.  

To accomplish this Carl Icahn buys up a vast amount of shares in a company at opportune moments in order to gain voting rights for shareholders.

This can even result in a hostile takeover if not approved by the board of directors or stubborn management who may fear for their jobs. 

Carl Ichan Quotes motivation 2 invest. Credit: www.Motivation2invest.com/Carl-Ichan-Quotes

Carl Ichan Quotes motivation 2 invest. Credit: www.Motivation2invest.com/Carl-Ichan-Quotes

Ironically many shareholders welcome Carl Ichan’s presence as an investor as they know he will hold management accountable for their decisions. 

Fun Fact: Carl Icahn is known for his public fights with another Legendary Activist Investor Bill Ackman. This occurred during the Herbal Life investment, where both activists took opposing positions & argued very personally on public TV!  

Investing Strategy:  Activist Investor, Contrarian, Value Investor

 

Carl Ichan Quotes Gallery

13. Walter Schloss 

Walter Schloss (1916 to 2012) is was of the greatest value investors in History. As a known disciple of Benjamin Graham, Schloss focused on deep value investing. 

Schloss took Ben Graham’s investment courses before going to work for him at the Graham-Newman Partnership, there he met Warren Buffett

Walter Schloss Quotes (1 (7)

Walter Schloss Quotes (1 (7). Credit; www.motivation2invest.com

Investing Returns

In 1955, Walter Schloss started his own fund and for over 45 years he delivered his investors incredible annual returns of 15.3% versus 10% for the S&P 500. 

In 1984, Warren Buffett named him as one of the Superinvestors of Graham-and-Doddsville.

 Warren Buffett stated about Walters Schloss:

 “He knows how to identify securities that sell at considerably less than their value to a private owner; And that’s all he does …

He owns many more stocks than I do and is far less interested in the underlying nature of the business; I don’t seem to have very much influence on Walter.

That is one of his strengths; No one has much influence on him.” 

Walter Schloss closed his fund in the year 2000 and passed away at the age of 95 in February 2012. 

Walter Schloss Quotes Gallery

14 Bill Ruane

Bill Ruane (1925 to 2005) is a famous & historical Value investor who was one of Warren Buffett’s Superinvestors of Graham-and-Doddsville.

When Buffett closed his original fund in 1969 he even referred his investors to Bill Ruane’s Sequoia Fund, this is the ultimate referral!

Bill Ruane’s fund had a Value based strategy of buying “Wonderful Businesses at fair prices” , rather than the strict Ben Graham approach of “Cigar Butt” style, deep value investing.

Bill Ruane investing Quotes (5)

Bill Ruane investing Quotes (5). Credit: www.motivation2invest.com

Investing record

Since Sequoia funds inception in 1970 they have massively outperformed the S&P 500. If you invested just $10,000 into the fund this would have grown to over $4.2 Million today! Compared with “just” $1.3 Million from the S&P 500. 

Bill Ruane Quotes Gallery

15. Jack Bogle

Jack Bogle (1929-2019) was the “Father of Index Fund Investing” as the Billionaire Founder of Vanguard. One of the large Passive investment fund providers in the world.

How Jack Bogle Founded Vanguard?

Jack Bogle started in the mutual fund business in 1951 when his senior thesis caught the eye of Walter L. Morgan, founder of the Wellington Fund.

Bogle started working at the Wellington fund and rose to become Executive Vice President in 1965 & was named one of “The Whiz Kids” by Intuitional Investor Magazine.

However, the good times didn’t last…as the bear market of 1973 led to poor performance by the Wellington Fund & caused a dispute amongst partners. This resulted in Bogles firing in 1974!

Not one to take things lying down, Bogle proposed a new company which would provide admin to the Mutual fund provider at a cost basis. This would be called the Vanguard Group and was also named “The Vanguard Experiment”.

After reading a study on efficient markets & past fund manager performance, Bogle realised that rather than trying to “beat the market” better performance could be achieved by buying the Market. 

“Rather than trying to look for a needle in a haystack, just buy the whole haystack”

Jack Bogle Investing Quotes (13)

Jack Bogle Investing Quotes (13). Credit: www.motivation2invest.com

In 1976, Bogle introduced the first index investment trust which allowed people to buy the market. This was ridiculed in the press as a “sure path to mediocrity” and “un-American”, the firm only managed to collect $11 Million during the release.

However, today index funds are a huge part of Vanguards approximately $5 TRILLION in assets under management!

Passive investing has even become more popular than active investing & this has really changed the entire investment industry.

Jack Bogle Quotes Gallery

16. Ron Baron

Ron Baron is a legendary growth stock investor, who makes big bets on high tech stocks. 

He is most famous for being an early Bull on Tesla stock and publicly placing an astronomical price target of $4,000 per share back in early 2020. This was before Tesla stock rose by over 800% that same year! 

In a 2021 interview with Bloomberg, Baron stated that He thinks Tesla CEO Elon Musk will become a “Trillion Dollar Man”. 

Ron Baron Growth Stock Investing Strategy & Quotes Credit: www.Motivation2invest.com/Ron-Baron-Strategy

Ron Baron Growth Stock Investing Strategy & Quotes
Credit: www.Motivation2invest.com/Ron-Baron-Strategy

Ron Baron invests into growth stocks with high revenue growth and a long term vision. He tends to hold these stocks for a very long term if the fundamentals don’t change.

Baron Looks for unique companies which are “changing or disrupting” an industry. For Example, Tesla is disrupting the auto industry and SpaceX is disrupting the rocket Industry with it’s reusable rockets. 

Ron Baron Quotes Gallery

17. David Dodd

David Dodd (1895 to 1988) is a legendary Value investor, who was one of Warren Buffett’s Super Investors of Graham & Doddsville! 

Dodd was a colleague of Benjamin Graham at Columbia Business School and together they wrote the bible of deep value investing “Security Analysis” in 1934.

David Dodd focuses on Deep Value Investing which involves buying assets below their intrinsic value with a Margin of Safety. The strategy also involves looking for “Net-Nets” these are stocks trading below their net asset value.

David Dodd Value Investing Quotes (

David Dodd Value Investing Quotes. Credit. www.Motivation2invest.com

How Buffett Met Graham & Dodd?

In 1950, Warren Buffett was turned down from Harvard Business School (the Irony)

Buffett quoted:

“I spent 10 minutes with the Harvard alumnus who was doing the interview, he assessed my capabilities and turned me down.”

Luckily for Buffett he discovered that Benjamin Graham & David Dodd were teaching at Columbia Business School. Having read their books “Security Analysis” & “The Intelligent Investor” cover to cover multiple times.

Buffett called them up “I thought you guys were dead, but if not I would love to come and study at Columbia” . Buffett was their greatest student & top of the class (no surprise)

David Dodd Quotes Gallery

18. Howard Marks

Howard Marks is a legendary Value investor with a specialism in deep value investing & special situations, such as credit & distressed debt investing. Marks is the founder of Oak Tree Capital .

Howard Marks believes everything is governed by cycles, from investor moods to stock market crashes.

Mastering the Market Cycle Howard Marks

Mastering the Market Cycle Howard Marks

Howard Marks even wrote a best selling book on the subject called “Mastering the Market Cycle” & “the most important thing”. The later book lists “the most important things” to do when investing. 

Investing Record

Howard Marks Oaktree capital has a history of exceptional performance. 18.8% IRR (Internal Rate of Return) vs the S&P 500 Annual Return of 10.4%. This is the annualised time weighted return since October 1988.

Investing Strategy:  Value Investor, Contrarian, Small Cap, Large Cap

Howard Marks Quotes Gallery

 

19. Julian Robertson

Julian Robertson is the billionaire former hedge fund manager of Tiger Management.

Now 89 years old, Robertson likes to invest into many so called “Tiger cubs” these are former Tiger Management employees who have since founded their own Hedge Funds

Julian Robertson Hedge Fund Investor Quotes (3)

Julian Robertson Hedge Fund Investor Quotes (3). Credit: www.Motivation2invest.com

Tiger Global

Tiger Global is one of the so called “Tiger Cubs” related to the investment management firm Tiger Management (Julian Robertson).

Tiger Global was founded by Coleman in 2001 with an initial check of $25 million from the great & famous investor Julian Robertson of Tiger Management.

Tiger Global is a leading hedge fund and private investment firm focused on companies in the Technology industry.

Tiger has been nicknamed the “As The World’s Biggest Unicorn Hunter
Fun Fact: A Unicorn” is a privately held startup company with a value of over $1 billion.

Julian Robertson Quotes Gallery

20. Bill Ackman

Bill Ackman is a legendary activist investor & billionaire, he is known for making big bets against the consensus & being right (most of the time, data later on)

His strategy was originally influenced by Warren Buffett & he considers himself value investor at heart. However, it’s clear his strategy is much bolder & more fitting to an activist investor with a specialism in credit.

Bill Ackman is known for his dogged persistence, when he believes he is right which can result in major win’s, but also some very public losses.

BEST BILL ACKMAN QUOTE MOTIVATION 2 INVEST Quotes (54)

BEST BILL ACKMAN TRADES Credit: www.Motivation2invest.com/Bill-Ackman-Trades

Investing Returns

Bill Ackman is one of the greatest investors of all time despite his bold style. Pershing Square holdings (LSE:PSH) has achieved a 1,412.8% return between (2004 to 2021) vs the S&P 500 return of 399.2%. Figures are net of performance fee (20%).

This is a compounded annual return of 17.1% vs the S&P 9.8% (2004 to 20201). Source. Pershing square holdings Annual Report.

Latest Trades 

Bill Ackman is betting big on rising interest rates due to inflation. Unpacking Bill Ackman’s 10 Best & Worst Trades | New Trade 2021 & Downloads |

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Bill Ackman Quotes Gallery

10 Brilliant David Einhorn Quotes | Investing Strategy

10 Brilliant David Einhorn Quotes | Investing Strategy

David Einhorn is one of the worlds most successful Long/Short Hedge Fund Managers. 

As of 2013, David Einhorn’s Greenlight Capital returned an incredible 19.5% since its inception in 1996. With a market volatility beta of around 0.5, this means many of those returns were uncorrelated with the general stock market.

In this post i’m going to reveal the investing strategy of David Einhorn by diving into his top 10 quotes. Enjoy! 

Investing Strategy: Short Seller, Hedge Fund

10. Investing is like Poker

David Einhorn Investor quotes. Credit. www.Motivation2invest.com/David-Einhorn-Quotes

David Einhorn Investor quotes. Credit. www.Motivation2invest.com/David-Einhorn-Quotes

“Texas Hold’em is about folding & waiting for that time every couple of hours when you have an advantage & can press it” – David Einhorn (Legendary Investor). David Einhorn is a big poker player as you can tell from this quote. There are many similarities between Poker and investing.

You are playing against the odds, against other people and emotions play a big part. Einhorn suggests folding until you have a great opportunity.

The Legendary Investor Warren Buffett often states In Investing there are “no called strikes” (baseball), thus you can sit and watch pitch after pitch go by, until one is in your “Sweet Spot”. 

9. Look for High Return on Equity

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

“Great Companies can generate alot of profit without requiring alot of capital, high Return on Equity (ROE)” – David Einhorn (Legendary Investor). For every dollar a company invests you want to ensure they will likely get more dollars back in the future. Thus investing into companies with high Return on Equity (ROC) or Return on Capital (ROC) is usually a good idea.

Legendary Growth Stock investor Nick Sleep suggests putting your investment into the hands of a “Great Capital allocator” .

Examples include Jeff Bezos (Amazon) who is known for doing a variety of “bets” , not all pay off (Fire Phone!) but the ones that do can increase the companies value massively (Amazon Web Services, AWS). 

8. Analysis is the key to success

David Einhorn Investor quotes (7)

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

“The loss was not bad luck, but bad analysis” – David Einhorn (Legendary Investor)

Starting with a solid analysis of the business fundamentals is the key to developing a high conviction investing thesis. A Great investor once suggested if the money you invested was going to support your family, what questions would you ask? 

7. Bubbles & Crashes

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

“What is uncertain is how much further the bubble will expand & what will pop it!  – David Einhorn (Legendary Investor). Bubbles are born out of greed, speculation, FOMO and herd mentality. Asset prices rise to astronomical values before crashing back to earth. From the Tech Bubble  (late 90’s) to the 2008 (Housing Bubble) and even Crypto bubbles previously.

The difficult part is timing the top of these bubbles, As the Legendary Investor Howard Marks states “Tree’s don’t grow to the sky”. 

financial crisis 2008. Collapse of Lehman Brothers

financial crisis 2008. Collapse of Lehman Brothers

6. Being Rational

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

“As an Investor my job is to figure out what will happen, not what should happen” – David Einhorn (Legendary Investor).

Anything can happen in the stock market, a smart strategy is to do a scenario analysis, think about the best case, worst case and most likely case. As the great investor Howard Marks states “Just because something can happen doesn’t mean it will happen”.

5. Have an Edge

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

“You are looking for situations where you have an edge either psychological or statistical” – David Einhorn (Legendary Investor). The key to success in the stock market is having an “Information edge”, this could be a unique insight from your own job, experience or just a different perspective.

The Legendary Investor Peter Lynch believes the average person can beat the guys on Wall Street using their “Edge”. For example, a Mother may no more about a certain baby product selling out rapidly and then could decide to research the stock. 

4. Cut your Losses

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

“If we decide we’re wrong about something in terms of why we did it, we exit period” – David Einhorn (Legendary Investor).

Cutting your losses can be difficult to do, due to “sunk cost fallacy”. This can result in investors pouring more into a poor position rather than cutting losses sooner. 

3. Poker & Investing 

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

“Poker and Investing are both games of incomplete information. You have a set of facts & are looking for situations where you have an edge” – David Einhorn (Legendary Investor)

2. High Conviction Bets

 

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

“We put the biggest amount of money into our highest conviction idea and then view others relative to that” – David Einhorn (Legendary Investor)

Although diversification is heavily touted as the best investment strategy by business school’s, many legendary investors believe the opposite.

Warren Buffett, Bill Ackman, David Einhorn and many more both would prefer to put more money into their best idea where they have real conviction, than in their 2nd and 3rd best.

This goes against conventional wisdom but actually makes sense as your “circle of competence” can only be so large. It is close to impossible to know everything about everything. 

1. Know When to Sell Stocks

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

David Einhorn Investor quotes (7). Credit: www.Motivation2invest.com/David-Einhorn-Quotes

“Never invent new reasons to continue with a position when the old reasons are no longer valid” – David Einhorn (Legendary Investor). Choosing when to sell a stock is a hard decision & unique to every situation.

Here are the only four reasons i sell a stock:

  1. When the Business Fundamentals Change
  2. Opportunity Cost (Better Investment opportunity)
  3. Trim Position for Risk Mitigation. 
  4. Stock is Hugely Overvalued

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David Einhorn Quotes Gallery

Top 10 Daniel Loeb Quotes | Activist Investing Strategy

Top 10 Daniel Loeb Quotes | Activist Investing Strategy

Daniel Loeb is the Billionaire hedge fund manager of an event driven, value investing fund.

Loeb’s Strategy is that of an Activist investor as he likes to buy troubled companies, replace inefficient & bad managers and thus increase value for shareholders, he describes this as his “Key to success”.

Other Famous Activist Investors include, the Legendary Bill Ackman and Carl Ichan.

Investing Strategy: Activist Investor , Hedge Fund

1. From Chaos comes Opportunity

Investor Daniel Loeb Quotes (1). Credit: www.Motivation2invest.com/daniel-loeb-quotes

Investor Daniel Loeb Quotes (1). Credit: www.Motivation2invest.com/daniel-loeb-quotes

“From Chaos Comes Opportunity”Daniel Loeb (Activist Investor) . This is very similar to our saying here at Motivation 2 invest, “Volatility = Opportunity”. When there is a Stock Market Crash and fear reigns in the air. Stocks can be bought cheaper and this can often mean an opportunity. The goal is to find out the situations where the Stock Market has overreacted or misunderstood a business. 

As Warren Buffett states “Be Greedy when others are Fearful and Fearful when others are Greedy”.

2. Be an Opportunist

Investor Daniel Loeb

Investor Daniel Loeb Quotes (1). Credit: www.Motivation2invest.com/daniel-loeb-quotes

“Our Philosophy is to be opportunistic across different assets” – Daniel Loeb (Activist Investor)   As CNBC’s Jim Cramer says “There is always a bull market somewhere” . There is always an opportunity to invest across many different assets this could be stocks, crypto, real estate etc. The trick is identifying the opportunities which others may have not discovered yet and then placing a high conviction bet. Bill Ackman is a master of this.

3. How to start a Hedge Fund?

Investor Daniel Loeb

Investor Daniel Loeb Quotes (1). Credit: www.Motivation2invest.com/daniel-loeb-quotes

“I had five family members, a few friends & $340k in life savings from 10 years working on Wall Street” – Daniel Loeb (Activist Investor) . We all start somewhere and raising the initial capital to start a hedge fund is no easy task. 

But as the Legendary Warren Buffett states “If your investing returns are good, investors will swim through shark infested waters to invest with you” this is very true. I previously interviewed a Former Hedge Fund Manager on my channel and he reveals the steps to starting a Hedge Fund.

4. Invest into the Misunderstood

Investor Daniel Loeb

Investor Daniel Loeb Quotes (1). Credit: www.Motivation2invest.com/daniel-loeb-quotes

“We look for companies which are misunderstood by the market & mispriced” – Daniel Loeb. 

The Stock Market is an auction based system similar to Horse racing a “Pari-mutuel” system. Basically this means you can’t just invest into the “best horse (best company)” because as this information becomes known by the public, the odd’s change.

Thus generally the majority of famous investors look for a “mispricing” in the Stock Market. This is where the Stock Market has got it wrong or potentially overreacted, the volatility can equal an opportunity. 

5. Invest into Special Events

Investor Daniel Loeb

Investor Daniel Loeb Quotes (1). Credit: www.Motivation2invest.com/daniel-loeb-quotes

“We invest when we see a special situation or event” – Daniel Loeb (Activist Investor) . A Special Situation could be a Merger/Acquisition, Stock Split, IPO, Company Default, Spinoff etc. These all offer opportunities from the volatility expected other investors which invest into special situations include: Howard Marks, Carl Ichan,Bill Ackman etc.

6. Hedge Funds have Changed

Investor Daniel Loeb

Investor Daniel Loeb Quotes (1). Credit: www.Motivation2invest.com/daniel-loeb-quotes

“It took me 5 years to get $100 Million, today people are starting out of the gate with that much” – Daniel Loeb (Legendary Investor). Raising Capital is easier today than it used to be in the past. This is for a few reasons, increased wealth, increased regulation, Low Interest rates etc. 

7. Develop an Investing Instinct

Investor Daniel Loeb

Investor Daniel Loeb Quotes (1). Credit: www.Motivation2invest.com/daniel-loeb-quotes

“Instinct is a type of Pattern Recognition which comes from experience of looking at companies which work” – Daniel Loeb (Activist Investor). As the Legendary Investor Peter Lynch says “The Person who turns over the most rocks wins”.

The More companies you analyse and the more investing experience you have, the more this “Instinct” for “Pattern Recognition” develops.

8. “Timing is Everything”

Investor Daniel Loeb

Investor Daniel Loeb Quotes (1). Credit: www.Motivation2invest.com/daniel-loeb-quotes

“Timing is Everything in Markets” – Daniel Loeb (Activist Investor).  Timing the market is extremely difficult as the old quote says “Time in the Market is better than trying to time the market”.   As Data from CNBC & multiple studies show:

“If an investor sat out the S&P 500’s 10 best days per decade

Then returns would be significantly lower.”

Analysing data going back to the 1930’s , If an investor sat out the S&P 500′s 10 best days each decade, the total return would stand at a measly 28%! However, if an investor held through all the market crashes & volatility total returns would have been a whopping 17,715%!

9. Embrace Capitalism 

Investor Daniel Loeb

Investor Daniel Loeb Quotes (1). Credit: www.Motivation2invest.com/daniel-loeb-quotes

“Capitalism without Bankruptcy is like Christianity without Hell” – Daniel Loeb (Activist investor).  
During the Financial Crisis of 2008 & 2020 Pandemic many banks & businesses were bailed out and stopped from going under. Now although this may have seemed necessary at the time, there is a few risks with this. Firstly, there can be “Zombie companies” running which clogs up the free market.

Secondly, Banks & Businesses which were taking more risk before a recession (over leveraged etc) would not have been punished for their aggressive style. Thus in the future they entire banking system may continue taking more risk, because if they win (they win big) and if they lose they get bailed out. 

financial crisis 2008. Collapse of Lehman Brothers

financial crisis 2008. Collapse of Lehman Brothers.

10. Process is everything

Investor Daniel Loeb

Investor Daniel Loeb Quotes (1). Credit: www.Motivation2invest.com/daniel-loeb-quotes

“Overconfidence in a bad process is like winning at Russian Roulette, then thinking it’s a great strategy…before blowing your brains out!” – Daniel Loeb (Activist investor) . Legendary Investor Howard Marks has a similar quote. Luck plays a big part in every wildly successful outcome, thus you cannot judge your investing success purely on the outcome…the process must be analysed.

Want to Learn How to Invest?

Rather than blindly picking stocks or following rumours, Why not learn how the greatest investors of all time invest? To find out more check out our Ultimate Investing Strategy Course. 

 

 

10 Best Investors to Follow | Greatest Stock Picking Record

10 Best Investors to Follow | Greatest Stock Picking Record

Best Investors Quotes Gallery

 

Investing into the stock market attracts the greatest minds, legendary characters and those hoping to strike it rich! The goal of investing, in words of Warren Buffett is “To lay out cash now with plan to get more back in the future” but this is no easy task.

There are many styles of investing from Value Investing to Growth stock investing & even Macro Economic trading. All methods are utilised with the goal of “beating the market”…which is not easy. 

The Stock Market is an auction based system similar to Horse racing a “Pari-mutuel” system. Basically this means you can’t just invest into the “best horse (best company)” because as this information becomes known by the public, the odd’s change.

Thus generally the majority of famous investors look for a “mispricing” in the Stock Market. This is where the Stock Market has got it wrong or potentially overreacted, the volatility can equal an opportunity. 

Thus in this post i’m going to reveal the 10 Best Investors to follow, who have BEAT the MARKET! 

Which Investors are the best?

INVESTING LEGENDS GREATEST INVESTORS RETURNS STOCK MARKET JIM SIMONS OUTLIER

INVESTING LEGENDS GREATEST INVESTORS RETURNS STOCK MARKET JIM SIMONS OUTLIER. Jim Simons (renaissance technologies) Vs Warren Buffett (Berkshire Hathaway) Credit: www.motivation2invest.com/Jim-Simons

Which Investors are the best? From the scatterplot above which plots Outperformance over the market index (S&P 500) on the X Axis and Number Years on the Y Axis.

We can see clearly that Jim Simons of Renaissance Technologies is the greatest investor of all time and a true outlier. His Fund has averaged over 60% annual returns (above the Index) for over 20 years!

Warren Buffett is also one of the best investors to follow due to the amount of time he has sustained great investment returns. Buffett has achieved great returns for nearly 60 years which are approximately 12% above the market index.  

1. Warren Buffett 

Warren Buffett…the man, the myth, the legend is one of the best investors of all time & a wealthy billionaire.

He is the epitome of a classic Value investor. Valuing Companies not stocks, with an extremely disciplined approach to his trades. His strategy focuses on risk minimisation & long term investing gains.

Track Record:

This has paid of substantially with an annualised compounded portfolio return of approximately 20% since 1964, for his investing conglomerate Berkshire Hathaway.

Overall returns from 1964 to 2021 = 2,855% (approximately).

Fun Fact: If you invested $1000 in 1964 into Berkshire, that would be worth an incredible $28,855. Close to a 29X Return!

The Great thing about following Warren Buffett is he tends to do a few focused, low risk and long term investments as opposed to trading daily. 

 

Warren Buffett Quotes Gallery

 

2. Jim Simons

Jim Simons is a Billionaire Hedge Fund Manager & Legendary Mathematician. Simons is the greatest “Quant investor” in the world.  He uses quantitative analysis & computer models with complex algorithms to spot inefficiencies in the stock market & trade daily. 

Jim Simons is the MOST SUCCESSFUL INVESTOR of all time, with an average annual return of 71.4% before fee’s. This is an incredible return.

Renaissance Technologies winning strategies have been notoriously secret which has led to the nickname “the worlds most secretive hedge fund”, this truly is the smartest money in the market. 

Jim Simons Trader Quotes (10). Credit: www.Motivation2invest.com/Jim-Simons-Quotes

Jim Simons Trader Quotes (10). Credit: www.Motivation2invest.com/Jim-Simons-Quotes

Can I invest into Renaissance Technologies?  

Not exactly, Jim Simons secretive hedge fund is NOT ACCEPTING any new money and is mostly owned by employees such as leading Nobel prize winning scientists.

However, by being a Member of a platform like Invest with Legends you can view the past investments of Renaissance technologies, to access Simons full portfolio & quarterly trades.

Jim Simons Quotes Gallery

 

3. Ray Dalio

Ray Dalio is the Billionaire founder of the worlds largest hedge fund, Bridgewater associates. 

Dalio got his first taste of investing during the “nifty fifties” this was a major bull market and everyone was talking about stocks. 

He overhead many conversations while caddying at a golf club & thus saved up his wages before investing.

He bought his first stock, North East Airlines which immediately increased in price. After which Dalio was hooked on investing & fell in love with the opportunities.

all weather portfolio ray dalio 3D

all weather portfolio ray dalio 3D. Credit: www.motivation2invest.com/Ray-Dalio

Ray Dalio’s investing Strategy has a big focus on Investing internationally and diversification across stocks, industries, asset classes etc.

Investing Strategy:  Diversified, Value Investor, Emerging Markets, alternative assets, Long Term, International, Economics. 

 

Ray Dalio Quotes Gallery

4. George Soros

George Soros is one of the Best Investors & traders in the world. He has a strategy of making bold Macro economic predictions & currency trades. Soros is most famous for making $1 Billion in a single day when his bet against the British pound paid off!

George Soros Quotes Motivation 2 invest (3). Credit: www.Motivation2invest.com/George-Soros-Quotes

George Soros Quotes Motivation 2 invest (3). Credit: www.Motivation2invest.com/George-Soros-Quotes

This was nicknamed the “greatest Trade of all time” and he executed this with his former business partner & Trading Legend Stanley Druckenmiller. 

Investing Strategy:  Forex, Contrarian, Economics, Trader, Top Down

 

George Soros Quotes Gallery

5. Carl Ichan

Carl Icahn is a legendary activist investor who’s brash & outspoken Strategy of investing has made him a billionaire, with an estimated net worth of $16.7 Billion. 

As an activist investor Ichan analyses poorly run companies where he believes a change in management strategy will improve the company & increase shareholder value.  

To accomplish this Carl Icahn buys up a vast amount of shares in a company at opportune moments in order to gain voting rights for shareholders. This can even result in a hostile takeover if not approved by the board of directors or stubborn management who may fear for their jobs. 

Carl Ichan Quotes motivation 2 invest. Credit: www.Motivation2invest.com/Carl-Ichan-Quotes

Carl Ichan Quotes motivation 2 invest. Credit: www.Motivation2invest.com/Carl-Ichan-Quotes

Ironically many shareholders welcome Carl Ichan’s presence as an investor as they know he will hold management accountable for their decisions. 

Fun Fact: Carl Icahn is known for his public fights with another Legendary Activist Investor Bill Ackman. This occurred during the Herbal Life investment, where both activists took opposing positions & argued very personally on public TV!  

Investing Strategy:  Activist Investor, Contrarian, Value Investor

 

Carl Ichan Quotes Gallery

6. Charlie Munger

Charlie Munger is the Billionaire Investing legend and great friend of Warren Buffett, Buffett openly admits to learning a lot from Charlie Munger. Munger has great witt, humour but is also an exceptional value investor. 

Munger is credited to have helped Warren Buffett invest into “Wonderful companies at fair prices”, rather than just deep value investments. 

Buffett had traditionally done cigar butt strategy investing, where he looked to buy companies trading below net asset value, with “one last puff” in them. 

Charlie-Munger-Quote-4-MOTIVATION-2-INVEST-1.png

Charlie-Munger-Quote-4-MOTIVATION-2-INVEST-1.png. Credit: www.motivation2invest.com

 

Charlie Munger Quotes Gallery

7. Cathie Wood

Cathie Wood is the founder & chief investment officer at Ark invest. This is an investment firm which specialises in investing into disruptive innovation. 

With a series of active ETF’s focusing on Genomics, Robotics and even space exploration. 

She is widely regarded as the biggest Tesla bull and was known for publicly stating what seemed to be outlandish price targets for Tesla of $4000+ , back when Tesla stock was trading at just a couple of hundred dollars. 

Cathie Wood Quotes Ark Invest Tesla Credit: www.Motivation2invest.com/Cathie-Wood

Cathie Wood Quotes Ark Invest Tesla Credit: www.Motivation2invest.com/Cathie-Wood

Cathie Wood of Ark Invest is a Growth stock investor who invests into companies which offer elements of disruptive innovation. She is not afraid of making bold bet’s against the consensus (Tesla 2019) and thus can be called a contrarian.

Cathie Wood believes Wrights Law (cost declines as a function of production) is a major predictor of future technology success from decreasing costs for EV Batteries to gene sequencing becoming more affordable. 

Investing Strategy:  Growth Stocks , Technology,  Medium Term, Daily Trades, Small Cap, Medium Cap.

 

Cathie Wood Quotes Gallery

8. Michael “Big Short” Burry

Michael Burry “Big Short” is a legendary contrarian investor, he is most famous for predicting the housing bubble of 2007 and subsequent financial crisis of 2008. 

Burry’s Hedge Fund opened a “Big Short” position against the US Housing market, betting that it would fall. This contrarian bet paid off for his investors & was popularised in the Oscar winning movie “the Big Short” where Michael Burry was played by Christian Bale. 

More recently Burry has opened major short positions against stocks like Tesla and Cathie Woods Ark Invest. See Michael Burry | What stocks has he been shorting?

Fun Fact: Michael Burry is a qualified medical doctor and also has a glass eye! For more see: 8 Unbelievable Facts about Big Short Michael Burry?

Investing Strategy:  Contrarian,  Short Seller, Value Investor , Medium Risk.

 

Michael Burry Quotes Gallery

9. Mohnish Pabrai

Mohnish Pabrai is a legendary deep value investor. His strategy focuses on medium risk , high return bets. 

Pabrai is one of the few Legendary investors who invests into volatile small cap stocks which offer greater potential for returns. 

These include “10 Bagger stocks” , these are stocks which can earn 10 times your money! 

Pabrai is also a contrarian investor who likes to “fish where others aren’t fishing” and bet against the crowd. 

He does this by investing into emerging markets and areas which seem to be of higher risk such as India and Turkey. 

Mohnish Pabrai Quotes Motivation 2 invest . Credit: www.Motivation2invest.com/Mohnish-Pabrai

Mohnish Pabrai Quotes Motivation 2 invest . Credit: www.Motivation2invest.com/Mohnish-Pabrai

In his book, Pabrai calls his investing Strategy the “dhandho” which is derived from Sanskrit word Dhana which means “endeavors that create wealth”.

In Mohnish Pabrai’s own words he looks for “no brainer opportunities for high investment returns.” 

Fun Fact: Mohnish is widely influenced by the investment strategy of Warren Buffett and Charlie Munger, whom he is now good friends with after winning an auction for charity meal with Buffett many years ago. 

Investing Strategy:  Value Investor, Contrarian, Small Cap, Large Cap, Emerging Markets, International. 

 

Mohnish Pabrai Quotes Gallery

10. Bill Ackman

Bill Ackman is a legendary activist investor & billionaire, he is known for making big bets against the consensus & being right (most of the time, data later on)

His strategy was originally influenced by Warren Buffett & he considers himself value investor at heart. However, it’s clear his strategy is much bolder & more fitting to an activist investor with a specialism in credit.

Bill Ackman is known for his dogged persistence, when he believes he is right which can result in major win’s, but also some very public losses.

BEST BILL ACKMAN QUOTE MOTIVATION 2 INVEST Quotes (54)

BEST BILL ACKMAN TRADES Credit: www.Motivation2invest.com/Bill-Ackman-Trades

Between 2004 and 2021, Bill Ackman beat the market with Pershing square producing an annual return of 17.1% vs the S&P 9.8% (2004 to 20201).

However, as noted on the below performance document between 2012 and 2021 the fund has slightly underperformed the S&P 500 Index producing a 13.6% compounded return vs 15.3% for the S&P 500.

BILL ACKMAN PUBLIC TRADE RETURNS BREAKDOWN, (Win/Losses). Credit: www.Motivation2invest.com/Bill-Ackman-Trades

BILL ACKMAN PUBLIC TRADE RETURNS BREAKDOWN, (Win/Losses). Credit: www.Motivation2invest.com/Bill-Ackman-Trades

Bill Ackmans Public Trade Returns on above chart:

  • More Win’s than losses (6 out of 10 public bets)
  • Losses are Smaller than Wins
  • Net Returns are positive +$4.75 Billion minusing losses from failed public trades.

Bill Ackman has recently announced a new inflation trade, as he thinks interest rates will rise. 

 

Bill Ackman Quotes Gallery

Top 5 Metaverse Stocks to buy? | Deep Analysis

Top 5 Metaverse Stocks to buy? | Deep Analysis

Metaverse Image Gallery |Meta & Microsoft

The Metaverse is set to be the next major technology platform. This would basically be an immersive virtual world where people can live, work and play…basically a real life version of the Matrix, but hopefully without Agents trying to take you out!

The Metaverse is not necessarily a new technology in itself but it will be a combination of many cutting technologies which will intercept in the Metaverse.

These technologies include:

  • Virtual Reality (VR) 
  • Augmented Reality (AR)
  • Artificial Intelligence (AR)
  • Big Data
  • 5G technology
  • High performance computing (HPC)
  • Visualisation
  • Blockchain technology.
  • and many more!

Inside the Metaverse you will be able to meet friends, visit an NFT (Non Fungible Token) Art Museum, Buy a virtual coffee using cryptocurrency and socialise or even have a business meeting.  Thus in this post i’m going to reveal the top 5 stocks to play the Metaverse future.

Personal Background: I completed my University thesis on Augmented Reality and the Metaverse way back in 2014! 

FACEBOOK METAVERSE STOCK FACEBOOK CONNECT CONFERENCE

FACEBOOK METAVERSE STOCKS FACEBOOK CONNECT CONFERENCE. Work Reimagined. Screenshot of Facebook connect by. https://www.motivation2invest.com/metaverse-stocks/

1. META (Facebook) (MVRS)

Facebook made global headlines when they announced in October to be changing their name to “Meta” which is short for the “Metaverse”. CEO Zuckerberg stated:

“Today we are seen as a social media company, but in our DNA we are a company that builds technology to connect people and the metaverse is the next frontier just like social networking was when we go started”

Zuckerberg then proceeded to show a video clip which showed him convert to an avatar and interact with friends inside what would be the “metaverse” of the future.

Meta owns Oculus the leader in Virtual Reality Goggles which they acquired in 2014, devices such as these can also be used today with platforms such as Facebook Horizons a Virtual world where you can walk around as an Avatar, this is really the seed of what would be a full blown metaverse.

The challenge for Meta now will be to gradually reduce the size and cost of the Oculus VR Headsets in order to reach more people. Zuckerberg stated:

We continually lower the cost of our Oculus Headsets & sell below cost, bringing the price down from $399 to $299 was a strategic move to encourage people to embrace VR

FACEBOOK METAVERSE MARK ZUCKERBERG CHANGING INTO HIS AVATAR

FACEBOOK METAVERSE MARK ZUCKERBERG CHANGING INTO HIS AVATAR. Screenshot of Facebook connect by. https://www.motivation2invest.com/metaverse-stocks/

In an Interview with CNET Zuckerberg stated the Oculus Quest’s greatest strength against competition was it’s convenient wire-free design and lower cost. 

However, Zuckerberg also plans to upgrade the Virtual reality with the Quest Pro. This will include face & eye tracking and will be sensitive enough to make allowances for those with beards etc.

The idea of Quest Pro is to create the ultimate sense of “presence”. This will be at the top end price point as Zuckerberg stated “there’s some ability for it to be a little more expensive.” Meta’s overall goal is to leverage the reach of their social media platforms to increase engagement in Virtual Reality and ultimately the “Metaverse”. 

Virtual Reality Headsets still make up a small niche market with just 5.5 million headsets sold last year.

FACEBOOK METAVERSE STOCK FACEBOOK CONNECT CONFERENCE

FACEBOOK METAVERSE STOCK FACEBOOK CONNECT CONFERENCE, . Screenshot of Microsoft Mesh (Ignite conference) by. https://www.motivation2invest.com/metaverse-stocks/

What about Facebook??

Changing Facebook’s company name to Metaverse was a very bold move by Zuckerberg, as “Meta” still makes over 97% of their revenue from advertising on the social media apps (Facebook & Instagram). 

Many critics also believed Zuckerberg was distancing the company from the Whistle-blower report, where an insider released internal studies by Facebook showing

Instagram, negatively affects young users’ mental health. According to one Facebook study leaked by Haugen:

  • 13.5% of U.K. teen girls said Instagram worsens suicidal thoughts.
  • 17% of teen girls say their eating disorders got worse after Instagram use.

This is no surprise to many experts in the space which have highlighted similar issues in past studies. 

Thus Facebooks new name change has been likened to an Indian restaurant which gave someone food poisoning  and has now reopened as a Greek Restaurant with a new name. Various Memes became abundant after the name change. My Favourite was “FETA”. Credit to the unknown creator. 

 

 
 
 
 
 
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On a more serious note, the platform social media platforms are designed to be addictive. According to Business insider:

“Americans check their phones 262 times a day on average.”

App developer Peter Mezyk says Facebook and Instagram users can become dependent on apps as one would painkillers.”

and According to the Guardian.

“Social Media Copies Gambling methods to create psychological cravings”

App Blockers and screen time apps are becoming increasingly popular, a quick review of the google play store (yes I have an android) showed App blocks with over 5 million downloads.

Metrics & Financials

Meta has now split into two reporting segments:

  • Family of Apps (FoA), ( Facebook, Instagram, Messenger, WhatsApp)
  • Facebook Reality Labs (FRL), ( augmented and virtual reality, Oculus etc) 

As mentioned prior “Meta” still makes over 97% of their revenue from advertising on the social media apps (Facebook & Instagram). 

FACEBOOK ADVERTISING REVENUES

FACEBOOK ADVERTISING REVENUES. Source: Facebook Investor relations

Sales Growth is up 35% year over year and earnings per share is up 19%.

Meta’s revenue from “other” which i’m assuming includes sales of Oculus headsets is there fastest growing segment up 195% on a percentage basis. 

User growth rate is slowing

Active User growth is still growing at 6% year over year…but the growth rate is started to slow down. From a massive 10.9% (Q3 2020) which was boosted by lockdown and even prior to that  8.56% user growth was still higher. I believe this trend will continue and is also another reason for Facebooks pivot to Meta. 

  • Facebook daily active users (DAUs) – DAUs were 1.93 billion on average for September 2021, an increase of 6% year-over-year.
  • Facebook monthly active users (MAUs) – MAUs were 2.91 billion as of September 30, 2021, an increase of 6% year-over-year.

META FACEBOOK USER GROWTH SLOWING

META FACEBOOK USER GROWTH SLOWING. Source: www.motivation2invest.com/Metaverse-stocks

Statistic: Number of daily active Facebook users worldwide as of 3rd quarter 2021 (in millions) | Statista
Facebook Daily Active users. Source: Statista

Advanced Valuation Model

Diving into my advanced valuation, I completed a conservative valuation of Meta assuming the follow:

  • Revenue Growth Rate decrease from 35% to 25% (2022)
  • Compounded Growth rate (next 2 to 5 years) 20%
  • Pretax operating margin increase to 44% up from 42.36%

The company also has $58 Billion in cash so plenty of dry powder read to invest into the metaverse. 

VALUATION MODEL FACEBOOK META STOCK ASSUMPTIONS

VALUATION MODEL FACEBOOK META STOCK ASSUMPTIONS. Download all valuation models for over 65+ stocks on our stock research platform. 

META STOCK VALUATION ANALYSIS UNDERVALUED

META STOCK VALUATION ANALYSIS UNDERVALUED. Download all valuation models for over 65+ stocks on our stock research platform. 

According my advanced valuation model, I get a fair value for Meta stock (Formerly Facebook stock) of $537 per share, the price is currently just $335 thus the stock is undervalued.

Great Founder & Fast Follow Strategy

GREAT FOUNDER MARK ZUCKERBERG (12% stake) and MANAGEMENT (Sheryl Sandberg) .

Zuckerberg is the founder of Meta, he is a humble visionary and a strategic genius. Zuck follows a very similar strategy to Microsoft in the late 90’s, “Fast Follow”. When a new competitor product starts to gain traction, Meta (formerly Facebook) try’s to acquire or just copies fast. Examples 

  • INSTAGRAM (ACQUISITION)
  • Oculus (Acquisition)
  • Whatsapp (Acquisition)
  • SNAPCHAT (Copy with Instagram stories) ,
  • TIK TOK  (Copy with Instagram REELS),
  • YOUTUBE (IGTV).
  • Clubhouse (Facebook Rooms) 

For me the future of Facebook is a bet on the execution skills of Mark Zuckerberg and his ability to continually pivot the company, as he has done previously. If Zuckerberg left (which i don’t think he will) , I would seriously consider selling the stock.

This is not financial advice and there is still the risk of Meta core social media platforms, starting to decline and the chance that the “metaverse” is not widely adopted. In my eyes, a bet on Meta is a bet on the skills of Zuckerberg to pivot once again. 

Stock 2. Microsoft (MSFT)

Microsoft also will be a major player in the creation of the Metaverse. 

MICROSOFT MESH METAVERSE VIRTUAL REALITY

MICROSOFT MESH METAVERSE VIRTUAL REALITY. Screenshot of Microsoft Mesh (Ignite conference) by. https://www.motivation2invest.com/metaverse-stocks/

CEO Satya Nadella stated at Microsoft Ignite (Nov 2021):

As the Digital and Physical Worlds come together we are creating an entirely new platform called the Metaverse

The Metaverse enables us to embed computing in the real world and to embed the real world into computing, brining real presence to any digital space.

No Longer just video conferencing with colleagues you can be with them in the same room

Microsoft owns Virtual Reality platform (HoloLens), Gaming Platform Xbox and Microsoft Teams.

Microsoft Teams saw a huge increase in users during lockdown:

  • From 20 million users in November 2019 to 44 million in March 2020, then 75 million by April.
  • June 2021, Microsoft teams has 145 million daily active users.
  • According to data from digital experience company Aternity, Microsoft Teams growth surpassed Zoom from February to June.
  • Microsoft Teams generated an estimated $6.8 billion in revenue in 2020, a 700 percent increase year-on-year

Screenshot of Microsoft Mesh (Ignite conference) by. https://www.motivation2invest.com/metaverse-stocks/

MICROSOFT MESH METAVERSE VIRTUAL REALITY. Team meetings of the future Screenshot of Microsoft Mesh (Ignite conference) by. https://www.motivation2invest.com/metaverse-stocks/

Microsoft announced, Mesh for Microsoft Teams which will allow a shared immersive experience directly in teams. The beautiful thing about Microsoft’s Metaverse environment is it is directly accessible seamlessly through teams, leveraging the huge  (145 million) daily active users.  This also removes the friction associated with the platforms.

Inside Mesh Users will be able to interact as a virtual avatar with others and the idea according to Satya Nadella is to replicate the “Water Cooler” style chat.

The Avatars also show real time facial expressions to create that sense of presence. The platform has lots of potential for “Virtual team” gatherings as many companies are going remote. 

Microsoft is Number 2 player in Cloud Computing Microsoft Azure, thus has plenty of capacity to run platforms at scale. 

MICROSOFT MESH METAVERSE VIRTUAL REALITY. Work place collaboration of the future

MICROSOFT MESH METAVERSE VIRTUAL REALITY. Work place collaboration of the future, Team brainstorming ideas on a whiteboard similar to the real world. Screenshot of Microsoft Mesh (Ignite conference) by. https://www.motivation2invest.com/metaverse-stocks/

Microsoft Business Model

Microsoft’s revenues:

  • Cloud services (No 2 Player Azure),
  • Productivity software (Windows 365, Teams)
  • More Personal Computing ( hardware, software, and gaming systems.) (Xbox, HoloLens etc) .

Microsoft’s cloud solution, brings in more revenues than its Windows operating system and witnessed exponential growth during lockdown! Sales Surged by over 50% year over year. Q3 2021, Cloud revenue up 33% year over year.

Microsoft 365 had 300 million paid seats in Q3 2021 and Microsoft Office, the company’s productivity suite, has over 50 million subscribers.

Microsoft Financials & Valuation

Earnings Release FY21 Q3

  •   Revenue was $41.7 billion and increased 19%
  • Operating income was $17.0 billion and increased 31%
  • $136 Billion in Cash!

MICROSOFT VALUATION MODEL PART 1. FINANCIALS

MICROSOFT VALUATION MODEL PART 1. FINANCIALS. Download all valuation models for over 65+ stocks on our stock research platform. 

Below I have completed conservative estimates of future growth:

  • 20% Revenue Growth for next year (Similar to prior 19%)
  • Reduce to 15% thereafter 

MICROSOFT VALUATION MODEL PART 2. GROWTH ESTIMATES

MICROSOFT VALUATION MODEL PART 2. GROWTH ESTIMATES. . Download all valuation models for over 65+ stocks on our stock research platform. 

 

MICROSOFT STOCK VALUATION MODEL PART 3. Stock Overvalued

MICROSOFT STOCK VALUATION MODEL PART 3. Stock Overvalued/ . Download all valuation models for over 65+ stocks on our stock research platform. 

From the above valuation Microsoft Stock looks to be 26% overvalued. 

Stock 3. NVIDA (NVDA)

Nvidia (NVDA) is a market leader in Graphics cards (Gaming), Data centres, Visualisation & Artificial Intelligence. NVIDIA could be the technological backbone behind many future Metaverse platforms. In August 2021, NVIDIA Announced the Omniverse:


“We are thrilled to have launched NVIDIA Omniverse, a simulation platform nearly five years in the making that runs physically realistic virtual worlds and connects to other digital platforms.

We imagine engineers, designers and even autonomous machines connecting to Omniverse to create digital twins and industrial metaverses,” 

The company is growing rapid.

  • Q2 revenue $6.51 billion, up 68% Year over year.
  • Record Gaming revenue of $3.06 billion, up 85% Year over year.
  • Record Data Center revenue of $2.37 billion, 35% Year over year.

NVIDIA STOCK FAIRLY VALUED

NVIDIA STOCK FAIRLY VALUED. . Download all valuation models for over 65+ stocks on our stock research platform. 

From my valuation Model using conservative growth estimates of 50% next year and 40% for the next 2 to 5 years NVidia Looks fairly valued. 

Stock 4. ROBLOX (RBLX)

Roblox is the popular online gaming platform which saw growth accelerate during the lockdown! The platform has over 43.2 million daily active users and its own Virtual currency (Robux). Inside the game players can use their “Robux” to buy items for their Avatar and even purchase tickets to unique experiences. 

For example in 2020, there was a live digital concert by Lil Nas X.

Roblox is also building a community of developers to build on top of the platform, many developers are making very good money building for the platform currently. 

With 1.3 million developers on track to earn $500 million collectively from their developed apps in 2021.

Roblox stock analysis

Roblox stock analysis. Image credit: Appleinsider.com

 The stock popped by 42% today after revenue doubled in Q3 2021. 

Roblox stock up 42%

Roblox stock up 42%.

I previously covered Roblox Just after their IPO. Video Below

Stock 5. UNITY (U)

Unity is a Leading game development engine which could be the backbone for the future Metaverse. 

  • Gaming: Pokemon Go, partnerships with UBISOFT (Assassins creed identity mobile game) , League of Legends (Mobile) escape plan, temple run.
  • Partnerships: Facebook Integration for unity developers to create games. This could be a major catalyst for the stock now Facebook has gone all in on the “Metaverse”

Google partnership with android for Augmented Reality games. 

2 Million Monthly users with 15,000 new projects started daily. SEQUOIA CAPITAL INVESTED (Although they would have gotten a much better deal)

Unity Stock

Unity Stock. Image credit: Studica.com. 

I completed my University thesis on Augmented Reality and the Metaverse way back in 2014, I used the Unity platform for my project.

Matterport Stock – Bonus: Speculative VR stock

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