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Market masters: Three legendary investors other than Warren Buffett who have ruled stock markets

While billionaire investor Warren Buffett has earned the reputation of being one of the most successful investors of all time, the global capital markets have seen many legendary investors in its long history. We take a look at such three such stalwarts.

Market masters: Three legendary investors other than Warren Buffett who have ruled stock markets
Warren Buffett has long said Ajit Jain has probably made more money for Berkshire than he has. (Reuters)

While billionaire investor Warren Buffett has earned the reputation of being one of the most successful investors of all time, the global capital markets have seen many legendary investors in its long history. Demonstrating extraordinary skill in stock picking and investing, these top investors have stock to their respective philosophies battling the various crashes and recessions which the stock market often throws up. According to Warren Buffett-run Berkshire Hathaway 2017 Annual Report, the CAGR in Berkshire’s book value per share was 19% over the last 50 year period.

In other words, a $10,000 investment in Berkshire Hathaway stock in 1965 would be worth nearly $88 million today. In contrast, the same investment in the S&P 500 would have been $1.3 million. While this shows Warren Buffett’s tremendous success as a value investor, we bring to you three other legendary investors.

Jack Bogle

Jack Bogle is often referred to as the “King” of index funds as he found the prominent trillion dollar asset manager Vanguard in 1975. Jack Bogle had pioneered the concept of index fund investing on the idea that, in the long-term, it would not be possible to beat the market, after considering costs associated with actively managed funds. Interestingly, Fortune magazine said that he is one of the four “Investment Giants of the 20th Century,” alongside Warren Buffett, Peter Lynch and George Soros in 1999. The Vanguard index has given a compound annual growth rate (CAGR) of 7% since its inception, while the GDP growth in the US rose 2.7% per year between 1976 and 2016.

Peter Lynch

Peter Lynch shot to fame for his ability to generate stellar returns. During 1977-1990, legendary investor Peter Lynch averaged a 29.2% annual return more than doubling the making his Magellan Fund at Fidelity Investments the best performing mutual fund in the world. Notably, during his tenure, assets under management (AUM) of the fund increased from a meagre $18 million to a staggering $14 billion. One of the greatest investment gurus of all-time, Peter Lynch if often quoted as saying, “Selling your winners and holding your losers is like cutting the flowers and watering the weeds.”

Benjamin Graham

Benjamin Graham known as “the father of value investing” has also left an indelible mark on Warren Buffett’s life, along with a deep imprint on Wall Street. In the preface to ‘The Intelligent Investor’ written by Graham, Warren Buffett writes. “To me, Ben Graham was far more than an author or a teacher. More than any other man except my father, he influenced my life.” Alongside his revolutionary work in the theory of investment finance, Ben Graham has also regarded for his significant contributions to economic theory.

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