There have been some incredible financial minds in America. But, who is the best? Who has contributed more than any others? Who are the greatest investors, financial thinkers, and money managers of all time?
10. Adam Smith – Adam Smith wrote “The Wealth of Nations” which is considered the first modern work of economic theory. The Wealth of Nations discussed that the free market, while appearing chaotic and unrestrained, is actually guided to produce the right amount and variety of goods needed by society by a so-called “invisible hand”. The invisible hand of the market is the term economists use to describe the self-regulating nature of the marketplace. The invisible hand is created by the combination of our economy’s self-interest, competition, and supply and demand forces, and is capable of allocating resources in society. Adam Smith is widely cited as the father of modern economics and capitalism.
9. Bill Gross – Bill Gross is a bond man. In fact, he is often called the “Bond King” because PIMCO, the organization where he is founder and Co-Chief Investment Officer, is the largest bond holders in the world. In investing circles and especially fixed investments, what Gross says carries a lot of weight. Gross is famous for his insight into the current market and where he views it is headed. Unlike previous great financial minds that we have showcased here on Own The Dollar, like T. Rowe Price or Benjamin Graham, Bill Gross is a current mover and shaker in the financial world who can be seen providing his incredible financial acumen in today’s current market situations on CNBC and the like. You should definitely keep your ear out for the things he says.
8. Charlie Munger – Almost anyone who fancies themselves an investor of finance junkie knows about the Oracle of Omaha, Warren Buffett, who is the Chairman and CEO of Berkshire Hathaway. But, a lot of people do not know that he has a sidekick and longtime partner in the company’s Vice Chairman, Charles Munger. Charlie Munger is a billionaire, who is Buffet’s right-hand man, and is considered one of the world’s savviest investors. He is someone who has helped guide Buffet’s portfolio picks since 1959. He is without a doubt Warren Buffett’s right hand man.
7. John Bogle – John Bogle is the founder and former CEO of The Vanguard Group. He is considered one of the pioneers of the mutual fund industry. He founded the Vanguard 500 Index Fund in 1975 which is widely considered the first index mutual fund. Bogle is famous for his insistence in his numerous books on the superiority of index funds over traditional actively-managed mutual funds. He believes that actively managed mutual funds cannot beat a well run index fund over a long period of time.
6. Peter Lynch – After joining Fidelity, the giant mutual fund and investment firm, in 1966, Peter Lynch rose up the ranks of the company. He eventually became the head of the Magellan Fund which originally had only $18 million in assets. Lynch grew the mutual fund into the largest in the world with more than $14 billion in assets and over 1,000 individual stock positions when he retired as the fund’s manager in 1990. From 1977 until 1990, the Magellan fund averaged a 29.2% return. After retiring, Lynch had secured himself as one of the greatest investors in the world. Lynch’s most famous investment principle was “Invest in what you know”. Peter Lynch has written three books on investing that should be on every financial junkie’s bookshelf: “One Up on Wall Street“, “Beating the Street“, and “Learn to Earn“.