If investing was like boxing, then
Warren Buffett
continues to be the undisputed heavyweight champion of the world.
Weighing in at a massive net worth of more than $70.2 billion, Forbes
tracks the Oracle of Omaha’s wealth in “real time” because Buffett seems
to get richer by the week. Even a recent loss of $2.5 billion — a financial hit that would ruin anyone else — doesn’t seem to faze Buffett one bit.
Buffett and Berkshire Hathaway have been at it for more than half a
century, so it’s hard for anyone with less time and experience to reach
him financially. He can’t stay in the investing game forever, however;
someday, someone will take his place as investment heir. Take a look at
our list of 10 successful investors that might inherit the market’s
throne from Buffett.
Related: Warren Buffett’s Investment Tip for ‘Know-Nothing’ Investors
If investments are a numbers game,
James Simons’ experience as a
former chair of the math department at SUNY-Stony Brook and alumnus
status from MIT are indications he’s well suited for the job. Beyond his
private investment company, Renaissance Technologies, Simons might be
known best as the head of the Simons Foundation, a charitable
organization that he’s donated $1 billion of his $12.5 billion fortune
toward.
At a new worth of $13.7 billion,
John Paulson, according to Forbes,
made his first few billions betting against the subprime mortgage crash
and came out ahead. This event-focused investment strategy seems to have
worked well for Paulson, 58, who waits for financial happenings —
housing disasters, mergers, bankruptcies, etc. — and then invests a
large amount of capital, earning big when stocks rise and it’s time to
sell.
Ronald Perelman’s career mirrors Buffett’s in many ways. Buffett owes
a lot of his investment savvy to Ben Graham and Berkshire alum Charlie
Munger; for Perelman, he learned about the business of finance from his
father, who let the younger Perelman sit in on board meetings. Their
investment stakes are similarly diversified, too: where Buffett prefers
putting money into soda, contracting, banking, health care and consumer
goods, Perelman’s investment tastes lean toward cosmetics, drug
research, licorice and the makers of the Scantron test. Fill in your
answer if Perelman, at $14.4 billion, stands to compete against the Sage
of Omaha.
Related: The 5 People Who Made Warren Buffett
7. Joseph Safra
Safra is the seventh wealthiest investor on this list, but he’s the
second richest in his home country of Brazil. With his investment firm
the Safra Group, Safra’s $15.1 billion total net worth comes from a
combination of banking endeavors in the U.S. (Safra National Bank of New
York) and South America (Banco Safra), as well as other ventures into
real estate and hedge funds.
At $15.2 billion, Ray Dalio might only have a fraction of Buffett’s
net worth, but he’s certainly almost as recognizable. As head of
Bridgewater Associates, the country’s largest hedge fund firm, Dalio
used to work on the floor of the New York Stock Exchange and later
invested in commodity futures. He’s also one to have strong opinions and
philosophies about money and investments — and how they translate to
life and success — and penned them in a manifesto Dalio entitled
“Principles.”
5. Luis Carlos Sarmiento
Sarmiento might not have Buffett’s ginormous capital (though, at
$15.4 billion, who’s complaining?), but, at 81, he still puts in a
Buffett-like work schedule of 60 hours a week. Sarmiento earned his
fortune by investing his gains working in the construction industry into
banks primarily based in his home country of Colombia. If Sarmiento
won’t succeed Buffett as No. 1 investor, it could be Sarmiento’s son,
who, by accounts, is being groomed to take over the family business.
Keep reading: How to Raise Your Kid to Be the Next Warren Buffett
4. Prince Alwaleed
If Warren Buffett is the folksy hero of the investing world, Prince
Alwaleed is the rock star, with some royalty thrown in for good measure.
The Saudi Arabian prince is worth $21.5 billion and, according to
Forbes data, mostly from a wide swath of investments that
include banking, hotels, entertainment, retail, agriculture,
petrochemicals, transportation, technology and real estate, notes Prince
Alwaleed’s personal website. One of the younger investors on this list,
at 59, Prince Alwaleed could succeed Buffett as the most high-profile
investor for many years.
If Buffett is the father of modern investing, George Soros is the
father of the hedge fund. The Hungarian-born Soros weathered the Nazi
occupation of World War II and fled to England, where his success in the
financial and investing sector began. Soros has more than $24 billion
in his bank account, famously (or infamously, however you look at it)
known as the “man who broke the Bank of England” after a 1992 short sale
of $10 billion worth of British pounds netted him a $1 billion profit.
Not even Buffett can boast a claim that big.
Icahn is truly an icon of today’s investing world. Despite a
reputation as a bold, no-holds barred Wall Street raider, Icahn, 78,
gets pegged today as an activist investor.
“Icahn looks for companies where the value of their assets far
exceeds the total value of their shares, or market cap,” said Nicholas
Vardy of the Eagle Daily Investor. “He focuses on ‘hard assets’ like
real estate, oil reserves and timberland that are relatively easy to
value and resell.”
Icahn is also like Buffett in that he famously avoids investing in markets like technology. At a net worth estimated by Forbes at $25.7 billion, Icahn surely isn’t losing any sleep about it.
This year, Bloomberg returned to his financial roots after spending
11 years as mayor of New York City. With a net worth of $35.8 billion,
he’s the eighth-richest person in the U.S. Having begun his financial
career as a high-stakes equity investment trader, Bloomberg left his
initial entry into finance in the early 1980s to found Bloomberg LP, and
the rest is history. Bloomberg has toyed with the idea of a
presidential campaign, so there’s a chance he could leave the investment
fold once more — something Warren Buffett will likely never do.
Like Buffett, Bloomberg, Icahn and Soros are considered self-made
investors. However impressive they are, none are surpassing Buffett in
the investment stakes. In light of Berkshire Hathaway’s losses last month from IBM and Coca-Cola, they’ve already been offset by an $816 million windfall from Buffett’s stock in Wells Fargo.
Small drops but big recoveries are indicative of Berkshire Hathaway’s
investment strategy, and are one reason why, as long as Buffett remains
on the financial scene, the Oracle of Omaha will continue to do his
magic.
Source: https://www.gobankingrates.com/personal-finance/10-investors-beating-warren-buffett-market/