The richest traders. Who are they ?

Trading on financial markets attracts people not only through it’s interesting mode of operation and profiting, but also as an opportunity to become a successful and famous person. And, of course, every potential trader invariably assumes that it is they who can repeat the successes of the most famous players on the financial market. Today we present the most famous and wealthy traders who, thanks to their own talent and personal philosophies, have been able to achieve new levels of success. This material will reveal the main formative stages of these well-known investors as traders, as well as interesting details from their biographies.

And now, the undisputed leader of our list is the richest and most famous investor, Warren Buffett, who now ranks among the top five richest people in the world.

 

A ranking of the richest traders. What do we know about them?

 

Warren Buffett

The investor’s wealth today has reached 100 billion dollars, but it all began with a minimum amount of investment and his own innate entrepreneurial talent. Warren Buffett was born in 1930, and the very fact that he was born into the family of a stockbroker predetermined the fate of this undoubtedly talented person. In early childhood, Warren demonstrated mathematical talent – the boy could easily solve complex calculations, which, according to many, became the key to his success in trading. Buffett earned his first money at a very young age doing simple operations with cans of Coca-Cola. He bought a pack of soda at wholesale price and then sold the empty cans for recycling! His first profit was only 5 cents, but this revealed Warren’s entrepreneurial talents. His next deal was a joint investment of money with his sister in shares of a utilities company – this was at the age of 11! Having bought only 2 shares of the enterprise, the novice investor was only able to earn a minimum of funds, but according to Buffett himself, this taught him a lot and helped him create his own investment philosophy, which consists of the simple expression “patience is a virtue.” The reason for this is that the shares bought by the investor for $38 each almost immediately fell to $27, which made the future leader of the world ranking of traders very nervous! Warren sold the shares when they reached the price of $40, but after some time they actually went up to $200! That’s how the investor learned his first lesson, which later brought him billions!

Today, Warren Buffett owns a stake in one of the largest investment funds, Berkshire Hathaway, which holds securities from such giants as Apple, Google, and Amazon. Owing to his work and successful investments, Buffett is called a “Seer” and an “Oracle” on the financial market. However, as the investor himself notes, almost all of his personal investments, especially at the initial stage of his career, were not entirely successful. He earned his fortune without predicting market fluctuations, but simply by clearly calculating his actions on the market and exercising patience. It is patience and the ability to curb his emotions during difficult moments that have made him a successful player on the financial market. At the age of 88, Buffett is an active trader and philanthropist – in particular, the investor is a signer of The Giving Pledge campaign, which means at least 50% of his fortune will be donated to charity. Despite his incredible fortune, the trader leads a rather modest way of life and does not spend much on luxury goods.

George Soros

The second line of the ranking goes to a legendary personality on the financial market, George Soros. Despite the fact that this investor does not lead the Forbes listing, his fortune is at $24 billion, he is the most famous trader today. The main reason for this is not only his success on the market, but also his fairly wide-ranging work with charities. But let’s start with his biography.

George Soros (born Schwarz) was born in Budapest in 1936. His family was middle class and not at all involved in investment activities. During the difficult times of World War II, the family was forced to change their Jewish name of Schwarz to Soros. It is worth noting that interestingly the translation of the investor’s name from Hebrew means “foundation,” and from Hungarian “next in line or receiver.” This is surprising not only because of the use of these terms in trading, but also the fact that Soros is an ardent opponent of the notion of “market fundamentalism” – he views the market as a social phenomenon that can change the life of a large portion of the world’s population and criticizes the policies of governments which put the interests of owners and investors at the top. Despite this, Soros is considered to be a most aggressive financial market trader who is almost always working on the brink of financial transaction legality.

Soros began his career as a traveling salesman, selling bags to earn his first money. He began his career as a trader after moving to New York to work at the FM Mager investment company – Soros’ specialization was in international arbitrage deals. His first brainchild on the investment market was Eagle (1967), which quickly attracted a fairly decent amount of investor funds and began to develop successfully. In 1973, Soros founded the Double Eagle Foundation, which also became a successful project. In 1980, Soros already had a fortune of $100 million and was the director of the Quantum fund. Interesting fact: all the investment funds created by Soros never suffered serious losses, although there were sometimes declines in the volume of profit.

After studying and analyzing Soros’ activity on the financial market, it is worth noting that many of the investor’s colleagues refer to him as a “financial extremist” who, through their aggressive activity, sometimes harm the market. In fact, Soros’ most famous transaction was an operation on a decrease in the pound sterling in 1992, which led to a complete change in the monetary policy of the Bank of England. After investing in a contract on a decrease in the value of the pound sterling worth 10 billion pounds, Soros earned at least 1 billion in profit in just one day and coined the term “black Wednesday.” What he did pushed the Central Bank of the United Kingdom to abandon the regulation of exchange rates by completely changing the financial system of England. Despite the fact that many experts talk about the significance of this financial operation on the foreign exchange market as being exaggerated, it is still a classic of financial trading even today!

At the moment, Soros is an active philanthropist and investor who has never focused solely on increasing his own capital.

John Mark Templeton

The third line of this ranking of the most famous and wealthy world traders deservedly goes to this investor. John Mark Templeton, born in 1912 in the US, has become a true stock market legend whose performance has not yet been surpassed!

Having received an excellent education at Yale and Oxford University, Templeton began his career as an investment lawyer. But after the creation of his own fund, Dobbrow and Vance (1940), he switched to investment activities. In 1954, Templeton opens his second successful project, the Templeton Growth Fund, and becomes the forefather of international investment in stock assets. The main principle of Templeton’s work was searching for companies with securities valued at no more than $1, but which offered good prospects for growth in the long term. In this way the investor achieved very large amounts of profit and never any losses. An interesting fact about his career is that there was a time when any partner of his fund who had invested $10,000 at the initial stage was able to get 2 million, and the annual return on investment was 14.5%, which is a very high indicator for the stock market.

During the course of his career, Templeton created a whole philosophy of efficient work on the stock market, which is actively used by modern traders today. Here are just some of the principles for traders which show the best results:

● Don’t follow the crowd

● Markets are volatile and any asset can make a profit

● Invest in real income

● Do not pursue popular assets

● Use mistakes to learn

Market pessimism brings the most profit

● No one can know everything

Such deep reasoning, based on his own experience, enabled the investor to reach a high level on the financial market – many trading professionals refer to Templeton as the greatest collector of 20th century shares and the most successful player on the stock market.

Steven Cohen

The next example of a successful investor is a trader of a new type, who, unlike classic investors, does not prefer medium or long-term capital investments, but rather quick transactions, sometimes completed within one business day. His intuitive and profound knowledge of market processes has allowed Cohen to earn $9.4 billion and become one of the most influential traders on Wall Street.

Steven Cohen was born in 1957 in the United States, and earned his degree in finance at the University of Pennsylvania. He started his career as a trader in private investment: he was a client of the brokerage company Gruntal, through which he conducted his own trading operations on the stock market. Thanks to high profit margins and the stability of his work on the market, he was invited to work for them. Cohen today considers his professional activity with this investment firm as a learning process and time spent building up experience. Only after 14 years did the investor decide that it was time to work independently. In 1992, he founded his own company, SAC Capital Partners, which he successfully heads today. At the moment, Cohen’s company manages $12 billion in capital, and it is one of the most stable investment firms and offers investors the most favorable conditions. Despite his extensive trading experience and large amount of capital, Steven remains a most active trader and brings his own company up to 15% in profit annually.

When describing Cohen’s work on the market, it should be noted that he does not seek to invest in long-term projects and does not study the work of the companies in which he conducts investments. As he says, you can earn much more simply by watching the chart during the day, rather than by studying the development prospects for a certain company and the fundamental indicators of the market. Thus, he can more safely be attributed to the category of aggressive scalpers than to classic investors in stock assets.

Peter Lynch

This investor is called the king of mutual funds. His biography begins in 1944. The life of the future billionaire and one of the most famous traders was extremely difficult in the beginning. He lost his father early on and was forced to work at 10 years old to feed his family. Peter’s main job was at the golf course where he set up balls. As he says today, this was his impetus for becoming wealthy. Being in an environment of wealthy people who mainly engaged in investment activity helped him learn such concepts as the financial market, exchanges, stocks, and investment funds.

He immediately put his first capital of 1,000 dollars into action, acquiring a modest stake in a small airline. This investment almost immediately brought him $10,000. In 1969, Peter had already become an analyst at Fidelity. This company, thanks to Lynch and his analytical skills, was able to occupy the highest line of the Wall Street rankings. Peter Lynch devoted 13 years of his life to the investment fund.

Peter Lynch believed the following postulates to be the fundamental principles that made it possible for him to become a successful trader:

● Always work according to a plan and a clear strategy

● Suppress emotions – the main enemy of any investor

● All drawdowns are consequences of history

● Only a cold head will allow you to earn

● An individual investor is more efficient

These principles and methods of working with financial assets allowed Lynch not only to earn a large amount of capital, but also to become a historic personality in the world of exchange trading.

In conclusion

As you can see, a trader does not need to be born into a rich family to become wealthy and successful, the most important thing is to be able to feel the market, have your own work strategy, and clearly understand what the goal ahead is!

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A ranking of the richest traders. What do we know about them?
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