Investment Gurus – Introduction
To become successful in anything, the role of mentors cannot be under estimated. This is because you need to learn from these people and avoid the mistakes that they have done in the past. A person who fails to learn from people who have gone ahead of them sets himself up for failure. In other words, people who don’t like learning from other people want to re-invent the world which in many cases is not an easy thing to do. As I have also mentioned in a previous article, there is nothing that happens in this world that has not happened in the past. Quite frankly, this is particularly in the area of trading and investing because of the cyclical nature of the market. For instance, we are now in an era of low commodity prices. It’s not the first time that commodities have been battered. It happened in ’07. Therefore, having a person to learn from can really help you. In this article, I will highlight a few people you need to follow as a trader to learn from them.
Investment Gurus – Jim Cramer (@jimcramer)
Jim Cramer founded the underperforming company, The Street. He is also a market commentator at CNBC famed for producing lists of the best companies to buy or go short. He also makes significant reviews of commodities and currencies and the market seems to listen to him. While not all his projections receive positive reviews, most companies that he recommends tend to go up (or down). They also tend to generate significant debate in the financial circles.
Investment Gurus – Mohamed El-Erian (@elerianm)
Mohamed El-Erian is the former CEO and CIO of PIMCO investments. Today, he is the chief economic adviser for Allianz, a giant conglomerate that owns PIMCO. He is also the chair of President Obama’s global development council. When El-Erian appears in Bloomberg or CNBC or when he pens down a piece, the market listens. This is based by his investment credibility he has achieved over the years. For instance, last year, he was accurate on his projection about the Greece crisis and its outcome.
Investment Gurus – Bill Gross
Bill Gross founded PIMCO which is now one of the largest fixed income companies in the world. Gross, famously known as the Bond King was austed from PIMCO and headed to Janus Investments. Every month, he releases a note which can be found here. The market loves Gross and whenever he makes recommendations, they listen. You should do that too.
Investment Gurus – Ray Dalio
Dalio founded BridgeWater Associates which is now the biggest hedge fund in the world. He is also famous for his presentations on how the economic machine works. When he speaks, the market listens. A few months ago, he was hosted by Bloomberg Markets during a conference. His remarks have been thoroughly analysed in the financial markets. You should follow him to understand the market cycles.
Investment Gurus – William ‘Bill’ Ackman
Ackman is my favourite investors of all time. He is the founder of Pershing Square Capital Management a firm he founded 10 years ago after his previous fund failed. Ackman is a revered activist investor who has achieved a lot for his investors. However, he has also gone through failure particularly in his recent battle to save Valeant Pharmaceuticals. By following him, you will learn how to deal with successes and how to avoid the failures he has gone through.
Investment Gurus – Jim Chanos
Jim Chanos is referred to as the king of short selling. He forecasted the fall of Enron. Now, he believes that Tesla is overvalued and so he has shorted it. You should follow Chanos because of his reputation at Wall Street. When he speaks against a company, you can be sure that the immediate reaction will be that of the company moving down.
Investment Gurus – David Einhorn
Einhorn is a renowned activist investor who founded Greenlight Capital, an activist hedge fund. When he attacks a company, you can be sure of an immediate reaction. Last year, he made a passionate speech at a Bloomberg event which he criticized Pioneer Resources. That day, the company fell by more than 4%.
Investment Gurus – Dan Loeb
This is also another activist hedge fund manager known for writing scathing attacks to managers. A good compilation of these letters can be found here. As a result of his experience, his fund has become so successful and his insights can help you become a better investor/trader.
Investment Gurus – James Simons
I have written before that I believe that Simons is the greatest traders of all time. Though he is a not a financial professional, he has mastered the art of using mathematics and physics to trade. As a result, his fund has gained the most. In fact, in 2008 when there was a recession and when many hedge funds closed shop, his fund had its best year gaining 80%.
Investment Gurus – Jeffrey Gundlach
Gundlach is the founder of Doubleline funds which manages more than $94 billion. He is known for making extraordinary projections which end up to be true. At the beginning of last year, he projected that oil market was troubled. He also projected that the dollar strength would be imminent. You should follow Gundlach because the street listens to him.
Investment Gurus – Useful Links
- Investment Gurus list on GuruFocus
- Investment Gurus arcticle on Skilledup