It’s no secret that investors comprise a huge chunk of the richest people in the world. Among these are hedge fund traders, portfolio managers, and investment gurus who know how to handle their finances and make money go ‘round. Based on Forbes’ list for 2015, here are five of the richest investors in the world:
- Warren Buffett
Still at the very top of the list is Berkshire Hathaway CEO Warren Buffett himself who has managed to rake in a net worth of $62 billion as of 2015. At 85 years of age, this Omaha native is known for his self-made road to riches, taking the more traditional route of investing in value.
Among his best-known trades is his investment in and sale of Berkshire Hathaway Class A shares in May 1990 when stocks were trading at $7,175. A decade later he traded $11 billion worth of forward contracts to deliver US dollars against other currencies, allowing him to rake in $2 billion on this position in just four years.
At the end of 2015, Buffet had invested in the energy sector, purchasing a sizeable stake in oil pipeline company Kinder Morgan. He also increased his holdings of refinery company Philips 66. His portfolio contains holdings on Wells Fargo, Kraft, P&G, and Walmart.
- George Soros
Next up on the list is George Soros, also known as “The Man Who Broke the Bank of England” with his short trade of $10 billion worth of British pounds, allowing him to make $1 billion in profits during the 1992 Black Wednesday crisis in the United Kingdom.
Compared to other investors that pay closer attention to equities or commodities, Soros has been known for his large positions in the forex market. For instance, he is also famous for making a huge bet against the Thai baht in the 90s, being blamed by some for being one of the triggers for the Asian financial crisis. His positions on major currencies, such as a short on the Australian dollar a few years back, also influence trading decisions other institutional and retail investors.
Soros is the founder of Soros Fund Management, which his son will start managing this year. He is a self-made rich man as well, amassing $24.5 billion in net worth as of 2015.
- Carl Icahn
Closely behind Soros is Carl Icahn who has a net worth of $20.5 billion. Apart from getting the spotlight whenever his investment ideas hit the headlines, Icahn is also known for his support of Donald Trump and the possibility that he might be named Treasury Secretary.
Icahn began his career on Wall Street as a stockbroker before forming a securities firm on risk arbitrage and options trading. Since then he has taken controlling positions on a number of firms, including Texaco, Philips Petroleum, Western Union, Marvel Comics, Revlon, Fairmont Hotels, Time Warner, Netflix, Motorola, and Herbalife.
Back in 2013, Icahn made a huge investment in Apple, partly contributing to the stock’s gains of over 5% then. However, recent reports revealed that Icahn dropped his $700 million in holdings of Apple stock on weaker iPhone sales. Icahn still holds shares in PayPal, Xerox, and Nuance Communications, Inc.
- Ray Dalio
Ray Dalio is the founder of Bridgewater Associates, one of the world’s top hedge funds. The firm holds approximately $150 billion dollars from clients, with Dalio raking in $15.3 billion in net worth as of 2015.
Dalio began his career in the financial markets by working as a commodity futures trader on the floor of the New York Stock Exchange. One of his first stock purchases was that of Northwest Airlines, which he bought when he was just 12 years old. He is known for predicting the financial crisis as early as 2007, focusing mostly on economic data and monetary policy.
Dalio is so well-known among investors that an app called iBillionaire tracks his current holdings. As of this writing, Dalio holds shares in Vanguard, Apple, and Bed Bath and Beyond. His portfolio is comprised of 21.1% technology holdings, 17.76% consumer discretionary stocks, and 16.08% in the energy sector.
In a recent essay, Dalio wrote that global trends and central bank policy have created an environment in which investors should expect lower returns at greater risk. He also wrote about the rising risk of currency wars, as central banks would need to see larger fluctuations in exchange rate levels in order to mitigate deflation.
- Abigail Johnson
The rose among the thorns in this male-dominated list is Abigail Johnson of Fidelity Investments. She is the President and CEO of this firm, which was founded by her grandfather in 1946. She has a 24% stake in this money management company, bringing her net worth to around $14.3 billion.
Johnson also serves on the Committee on Capital Markets Regulation and is a member of the Board of Directors of the Securities Industry and Financial Markets Association. She has been with Fidelity as early as her college years, joining the firm full time in 1988 as an analyst.
Although she is new to the company’s top spot, she has been making several overhauls in terms of replacing heads of underperforming divisions and reshaping units that are losing money. After all, the company has lost money in recent years with its strategy of emphasizing passive investments that mimic indices for lower costs than typical mutual funds.
Fidelity has since launched its own brand of ETFs, avoiding the index-tracking model and keeping those managed actively. However, this decision has proven to be costly for the company, possibly since these products haven’t been marketed well to investors.
Of course these wealthy investors didn’t make it all the way to the top without a few roadblocks so it’s important to note how grit and their dedication to the craft played a huge role in their success. Buffet, Soros, Icahn, Dalio, and Johnson did make a few wrong calls back in the day but stuck to the game and eventually emerged more profitable than ever, learning from their mistakes.
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