Lessons We Can Learn From The World’s Best Investors

The best advice on how to succeed in a certain area is to follow those who have already succeeded in that area. That’s why we look to the world’s top investors to understand their stories and how they reached the top. If you’re interested in investment, it would be wise to follow the advice of these wise and wealthy people. Here is some advice based on the approaches used by the world’s best investors.

Jeff Bogle, Founder of Vanguard

When Bogle launched the Vanguard 500, the first retail stock index fund in 1976, many people doubted him. In fact, this business move was referred to as “Bogle’s Folly”. But now it is clear that Vanguard 500 is helping many people gain diversified exposure at a small cost. In today’s world, it’s impossible to beat the market. As a result, low costs are the most important aspect of investment. In that way, Bogle was thinking ahead of his time. Now, Vanguard Group has become the world’s largest mutual fund family, having garnered $2.6 trillion under management.

So what can we learn from Jeff Bogle? For one, ignore anyone who tells you you’re wrong. But there’s another important lesson. Costs are extremely important to people. If you can offer people a low cost and still be successful, you’ve got this one in the bag. If you want to invest like Bogle, allocate your investments between two things: Vanguard Total Stock Market Index and Vanguard Total Bond Market Index. The way you allocate these should be tailored to your age and your risk tolerance.

Warren Buffett, Chairman and CEO of Berkshire Hathaway

Warren Buffet was taught by his mentor, Ben Graham that instead of buying stocks, you’re buying businesses. And some businesses are placed on the market for way less than they’re truly worth. It was important to take this opportunity to buy these businesses–which, are stocks. Using this philosophy for his investments since the 1950s, Warren Buffett has achieved a level of success we can’t argue with; his investments were a large part of his $565 billion fortune. He invested in Washington Post, Disney, Coca-Cola, Geico, American Express, Capital Cities/ABC and much more. Use Warren Buffett’s strategy and you could be destined for wealth.

Sam Zell, Chairman for Equity Group Investments

Sam Zell’s approach is to find companies that are having trouble reaching success and to buy them cheaply. Some may shy away from this approach for fear of debt, but not Zell! Finding poorly managed companies and turning them around gave him a great opportunity for gaining revenue. In the late 1960s, Sam Zell started the residential REIT structure. This structure gave ordinary investors the opportunity to buy shares in apartment buildings, thus increasing the liquidity of real estate markets enormously. If you want to invest in companies such as Zell, check out some of their largest holdings that are shared publicly. These include Starwood Hotels, Anixter International and Equity Residential.

It is important to look at the successes of the big names in investing as lessons on how to invest for the future. While there are no 100{5553ae9a0c751cdf0ee2d2e4eef7031f430a2a8487a9109cfceac641cd7ebc43} guarantees in the world of investing, partaking in the methods that some of America’s most successful investors used is likely to lead you to success. Whether it’s Jeff Bogle, Warren Buffett, or Sam Zell, it’s always wise to use the theories of big investors when embarking on your own investing endeavors. Who knows? You may even follow in their footsteps!

© 2022 Jay Gotlieb | Financial Services Professional