Top 7 U.S. Investors Who Shaped Financial World

TEMPO.CO, Jakarta - Ever wondered how the financial landscape evolved into what it is today? The journey wasn’t instantaneous; it's been shaped over time by influential figures whose bold moves have left a lasting impact. The United States, in particular, was home to several influential figures who reshaped the financial landscape. Here’s a look at the top seven U.S. investors who have shaped the financial world, as highlighted by Bankrate.

Top 7 U.S. Investors

1. Warren Buffet

Warren Buffett is not only the world's richest investor, he's a living legend in the financial industry. As CEO and Chairman of the American multinational conglomerate Berkshire Hathaway, he owns several well-known companies and stocks such as GEICO, Dairy Queen, Coca-Cola, and many more. 

According to Bankrate, Buffett's expertise in investing is best exemplified by his remarkable feat in 1965. He invested a modest $1,000 at the time, which grew to $180 million 57 years later. Because of his incredible performance, Buffett is known as the "Oracle of Omaha. 

2. Charlie Munger

Charlie Munger is best known as Warren Buffett's longtime business partner and vice chairman of Berkshire Hathaway since 1978. As Buffett's right-hand man, Munger's demeanor at Berkshire's annual meetings has been characterized by two types of responses to shareholder questions. He might offer sharp, practical advice, such as the importance of managing expectations and avoiding envy. Or he might simply respond with a short "no comment" after Buffett has given a detailed answer.

Before joining the company, he had a successful career as both an investor and a lawyer. He is respected for his intellectual approach to investing and life, with his signature advice of "Invert, always invert." This motto encourages investors to focus on avoiding common pitfalls rather than chasing success.

3. Peter Lynch

Peter Lynch is one of the most successful and well-known investors of all time. Lynch is the legendary former manager of the Magellan Fund at Fidelity. He took over the fund in 1977 at the age of 33 and ran it for 13 years. His investment style has been described as adaptive to the prevailing economic environment at the time, but Lynch always stressed that people should be able to understand what they own. 

In addition to being a successful investor, Lynch also authored two classic investment books, "One Up on Wall Street" (1989) and "Beating the Street" (1994).  Through his books, he shared his common sense approach to investing. One of Lynch's most famous pieces of advice is "Buy what you know." By this, he means that people should look at what types of goods and services are popular with friends and family, as this may indicate an up-and-coming company.

4. Bill Ackman

Bill Ackman, founder and manager of Pershing Square Capital Management, is a high-profile investor known for making bold bets and making them public. He rose to prominence with a successful short sale of mortgage insurer MBIA during the financial crisis. He also profited from investments in General Growth Properties and Howard Hughes Corporation, where he serves as chairman.

Along with his successes, Ackman has also suffered significant losses. His highly publicized bets on J.C. Penney and a short position on Herbalife lost him nearly a billion dollars after a confrontation with Carl Icahn. Despite the setback, he held on to his position, showing that even top investors can make mistakes.

5. Carl Icahn

Carl Icahn is an activist investor who serves as Chairman of the Board of Icahn Enterprises, a holding company with a diversified portfolio. Icahn is known for his aggressive activism in corporate America. A Princeton graduate, Icahn gained fame in the 1980s as a corporate raider, using tactics such as greenmail to extract profits. 

Although he has moved away from such methods, he continues to buy companies, sell off divisions, and push for divestitures, earning a reputation for his hard-nosed negotiating style. Icahn famously took on Bill Ackman at Herbalife, calling him a "liar" and a "crybaby" on national television, and profited handsomely by holding a large stake in the company for years.

6. Benjamin Graham

Benjamin Graham is one of the most influential investors of all time. The impact of his research on securities laid the groundwork for the detailed fundamental valuation methods that are now widely used in stock analysis by market participants. Due to his greatness in the value investing approach, Graham is known as the "Father of Value Investing". 

Benjamin Graham's books have become timeless guides for investors due to his clarity and straightforward approach. Some of the books are "Security Analysis" (co-authored with David Dodd) and "The Intelligent Investor", where he detailed his investment principles. He also introduced the allegory of "Mr. Market" in his 1949 book "The Intelligent Investor". The concept of Mr. Market is designed to help investors better understand the emotional and often irrational nature of the market.

7. George Soros

Although Soros is known for his role in the investment industry, he is more of a trader than an investor. Nicknamed "The Man Who Broke the Bank of England," Soros famously made a $1 billion profit in 1992 by betting against the British pound. He's also known for applying the principle of reflexivity to financial markets, which suggests that investors' beliefs can drive a company's success or failure. 

Unlike Buffet, Soros is the type of investor who buys to trade in and out, and doesn't hesitate to buy back a position he's just sold if new information suggests it will rise in value. He is also known for applying the principle of reflexivity to the financial markets, highlighting how investor beliefs can influence a company's success or failure.

These seven investors continue to influence the market and offer timeless lessons in investment philosophy, strategy, and execution. Whether through value investing or bold bets, these figures have left an indelible mark on the industry, guiding current and future generations of investors.

Bankrate | Investopedia | Britannica

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