Investing is HARD.
Even if you had all the time in the world, you simply can’t match the experience and skill of more successful investors.
So why not follow in the footsteps of the successful investors who have already made it?
If you wish to increase your net worth, here’s a list of the ten best investors to follow for advice and inspiration.
Best Investors to Follow for Advice and Inspiration
Most successful investors tend to stay out of the limelight (Warren Buffett being the exception.)
Here are the ten investors you need to become familiar with. Each with a different investment philosophy and investment strategy, you’re bound to get value from following them.
If you look at his bio alone, you’ll quickly realize that Reid Hoffman is one of the world’s leading consumer internet and software experts.
His career path started impressively enough with working for Apple and Fujitsu. From there, he moved on to become the COO of PayPal. In 2002, he co-founded LinkedIn. And later on, he became a founding investor in Open AI and his own startup, Inflection AI.
From this data alone, it’s safe to say Hoffman holds a wealth of experience. But that’s not all. Having played a key role in helping companies like Facebook and Airbnb succeed, it’s clear that this investor knows how to spot potential and help transform it into a successful business.
What’s so impressive about Hoffman’s online presence is that he readily shares his insights, advice, and mentorship. So, if you’re looking to learn something from one of the biggest names in tech of the past two decades, make sure to check out his podcast, Masters of Scale, as well as subscribe to his biweekly LinkedIn newsletter on technology, Long Reids.
As the co-founder and former CEO of AngelList, Naval Ravikant’s name has become synonymous with entrepreneurial wisdom and success. Having invested in organizations like Twitter, Uber, Foursquare, and Wish.com during the seed stage, it’s evident that his knack for recognizing growth potential is unparalleled.
But what sets Ravikant apart from other investors is that he’s not just happy to share his wisdom and insights in the business world. But even more, he regularly publishes content centering around mindfulness strategies for building wealth instead of just making money.
The best place to follow Ravikant is, of course, on his official website Nav.al. However, if you’re interested in bite-sized bits of information and inspiration, check out his Instagram, where he posts much more regularly.
As an investor who started out as a serial entrepreneur (and still goes back and forth between the two roles based on available opportunities), Travis Jamison knows what it’s like to have skin in the game.
He founded and built up several small businesses — Saas, ecommerce shops, health products, and his search marketing agency. He experimented with every type of investment out there. And in the end, he concluded that none of the existing options worked for him personally.
When he started Smash, his goal was simple. He wanted to be the type of partner and mentor existing businesses could team up with to gain access to capital, make a partial exit, or access the necessary support to help their companies grow.
So, if you’re an intelligent investor looking for inspiration, advice or insights, check out Travis’ social profiles. They’re a great source of valuable info — especially if you’re an entrepreneur. He regularly shares the lessons he learned over the years on multiple platforms, including his Twitter and LinkedIn profiles, his personal website, and his investing community newsletter.
If you’re solely interested in building wealth and making money, you’ll do well enough by keeping up with the likes of Warren Buffett or George Soros. However, if you believe there’s more to investing than solely making profits, try to keep tabs on Chris Sacca.
Sacca made his wealth in the late 2000s and early 2010s when he left a position at Google to pursue angel investment opportunities.
Then, he became one of the most famous investors when he famously appeared as a recurring guest on Shark Tank. And, if TV stardom wasn’t enough to testify to his expertise, consider that some of his most famous investments include Photobucket, Twitter, Instagram, Uber, Twillio, and Kickstarter.
In 2017, Sacca retired from venture capital to focus on media appearances and personal pursuits. He made it his mission to educate audiences about the more personal aspects of investing. And he has built a reputation as a financier who follows his heart and purpose.
So, it is no surprise that, in 2020, he decided to come out of retirement, launching the Lowercarbon Capital fund that aims to back eco-oriented companies to help them “unf**k the planet.” Check out his Twitter or blog.
Liz Ann Sonders
Liz Ann Sonders as shown on this Investment News article.
Data and insights are exceptionally valuable for investors looking to make the right calls. So, if you’re looking for voices that can enlighten your financing decisions, it’s not a bad idea to follow someone willing to share that data.
Liz Ann Sonders is the chief investment strategist at Charles Schwab. However, what makes her stand out from her peers is her readiness to share her findings with anyone interested.
Not only does she actively share findings on Twitter and LinkedIn. But even more, she adds her commentary to the posts, making it easy for anyone to understand their implications. Plus, she’s a co-host of the On Investing podcast, a great resource for economic news and their impact on your portfolio.
If you’re looking for someone you can rely on to share their knowledge and do so often, Fred Wilson is an excellent investor to follow for advice and inspiration.
As a venture capitalist, Wilson made his name in 2004 when he started Union Square Ventures. With this firm, he heavily invested in Web 2.0 companies (including Twitter, Tumblr, Kickstarter, Etsy, etc.). And if these projects weren’t enough to show how good he was at sniffing out potential, consider that Wilson also co-led Coinbase’s Series A funding back in 2013.
However, what makes Fred Wilson one of the best investors to follow for advice and inspiration is that he actively shares his insights on a (almost) daily basis on his blog AVC – Musings of a VC in NYC. Adding his blog to your RSS feed is guaranteed to unlock some valuable insights about tech. But even more, it can be a valuable source of information regarding the ins and outs of venture capital.
Any team, company, or organization is only as strong as its people. And nobody understands this as well as Jessica Livingston.
It doesn’t matter whether you’re an entrepreneur trying to understand investing or an investor looking to gain a better idea of what it takes to lead a company. If you want a solid source of insights and inspiration, you must add the co-founder of Y Combinator to your radar. After all, the startup accelerator was behind companies like Airbnb, Doordash, Dropbox, Reddit, Stripe, and Twitch.
What’s so impressive about Livingston’s approach to sharing her knowledge is that she doesn’t just give behind-the-scenes glimpses into the investor life. But even more, she puts a heavy emphasis on the personal side of investing to share what it actually takes.
A good place to follow Livington is on Twitter where she is fairly active. However, the best place to access her insights is on her podcast, The Social Radars. Or you can read her book Founders at Work, which comprises personal interviews with some of the world’s biggest tech giants.
To say that Tim Draper is a visionary would be an understatement. With a successful investing career that includes names like Tesla, Skype, SpaceX, and Coinbase, it’s clear that this investor understands tech and where the world is going.
However, the main reasons Draper stands out from the crowd include his ability to predict future trends and his belief in the transformative power of tech. After all, he was one of the first champions of Bitcoin. And his most recent investments in companies that use AI, blockchain, and computational genomics show his future-oriented outlook.
So, if you’re looking for someone whose portfolio you can copy for great returns, Draper is an excellent contender. However, his advice is even more valuable if you’re an entrepreneur, especially as he’s super committed to helping great ideas become reality.
Keep up with Draper on Twitter, check out his pre-acceleration program at Draper University, or get a copy of his book How to Be The Startup Hero: A Guide and Textbook for Entrepreneurs and Aspiring Entrepreneurs.
Bill Ackman, as shown on the CNBC article here.
Bill Ackman is a hedge fund manager who currently runs the Pershing Square Capital Management hedge fund, managing over $16 billion in assets.
However, a few factors make this investor such a fascinating figure. First and foremost, his hedge fund returned 288% last year, which goes way beyond market beating returns. Secondly, his portfolio is concentrated on just seven stocks (with Alphabet and Chipotle accounting for 34% of all his investments.
Thirdly, Ackman has a strong understanding of the stock market and an unmatched ability to find unexpected profitable opportunities, leading to his consistent investment success.
And finally, he stands out from his peers thanks to his activist approach, showing that he’s more than willing to bring his dreams to fruition.
What’s great about following Ackman is that he’s one of the most transparent figures in finance right now. Not only is he active on Twitter. But even more importantly — especially if you’re trying to find investors to learn from, not just copy — he’s candid about his failures, which is not something you’ll often encounter in the finance world.
Finally, as you explore investors to follow for advice and inspiration, don’t forget that some of the most valuable lessons come from the past. Therefore, you shouldn’t even think about starting your investment journey without becoming acquainted with Benjamin Graham’s philosophy.
The legendary investor Benjamin Graham is often called the “father of value investing” thanks to his dedication to emphasizing the difference between the price of a stock and the value of its underlying business.
Essentially, Graham was strongly against the practice of speculative investing, believing instead that investors need to seek intrinsic value when exploring opportunities.
His works include two books, Security Analysis and The Intelligent Investor, both of which are required reading for new investors at many investment firms around the world. So, regardless of whether you want to turn investing into a full-time career, a source of passive income, or just want to learn more about finance as an entrepreneur, they’re excellent titles to add to your reading list.
The Fidelity Magellan Fund
The Fidelity Magellan Fund is one of the most successful mutual funds. But what exactly is this fund, and why is it on a list of investors to follow?
Launched in 1963, the Fidelity Magellan Fund made a name for itself as one of the most well-known actively managed mutual funds. It gained significant fame under the stewardship of Peter Lynch, who managed the fund from 1977 to 1990. Under Lynch’s management, the fund not only grew in size but also outperformed the market consistently, a feat that cemented its status in the investment world.
The fund is known for its active management style, meaning that its portfolio managers actively select stocks and other securities with the goal of beating the market, rather than just matching a market index. This approach involves thorough research and analysis to identify companies with strong growth potential.
Throughout its history, the Fidelity Magellan Fund has been characterized by a flexible investment strategy. It doesn’t restrict itself to companies of a certain size or in a specific sector. Instead, the fund has been known to invest in a wide range of companies, from well-established industry leaders to emerging players, across various sectors. This flexibility allows the fund to adapt to changing market conditions and to seek opportunities wherever they may arise.
Why Follow Established Investors?
The most efficient way to multiply your wealth is investing.
Copycat or coattail investing is a strategy that involves replicating the investing activities of famous or successful investors. It has been gaining popularity recently, and it’s no surprise considering that 58% of U.S. households owned stocks in 2022.
Moreover, research shows that people are starting to invest earlier. This is, in part, due to the popularity and abundance of FinTok content. And it’s safe to say that the wide availability of investment platforms has made it super easy for anyone to start making money by investing in stock.
So, why do people look at established investors to base their financial decisions on? In addition to the fact that these people’s success already speaks in their favor, there are several other benefits to following in their footsteps — especially if you’re just getting started.
For one, taking inspiration from more experienced investors could help you identify emerging trends and potential growth areas. Moreover, you could use this strategy to pick up advanced tips and tricks while starting out. And, of course, you can also learn from the actions of these finance gurus by looking at things not to do, as this will be of huge help in preventing you from losing your hard-earned money.
Elements Famous Investors Have In Common
What does it take to be a successful investor? While there’s no one-size-fits-all answer, some common characteristics seem to give many top investors an edge. Let’s take a look at what these are.
Patience and Discipline
The best investors aren’t looking for quick wins; they’re in it for the long haul, understanding that real growth takes time. They also never stop learning. Whether it’s new market trends or economic theories, these investors are always updating their knowledge.
Risk Management Skills
Successful investors know how to balance the potential for high returns with the risk of losses. They’re also great at analyzing data, from financial reports to market indicators, helping them make informed decisions.
Flexibility and Adaptability
The best investors adapt their strategies as needed, always staying one step ahead. They think for themselves, too, often finding hidden gems that others overlook because they’re not afraid to go against the crowd.
Despite the ups and downs of the market, these investors keep their emotions in check, avoiding rash decisions based on fear or greed. They have a clear investment strategy that guides their choices, which helps a lot in maintaining focus and direction.
Finally, they network with other investors and entrepreneurs who can provide them with valuable insights.
While each successful investor has their own unique approach and style, these traits seem to be the common denominators in many of their stories. It’s not about being perfect, but about having a solid foundation that guides your investment decisions.
Investment Strategies Used By Most Successful Investors
When we look at the world of successful investing, it’s clear that there’s no magic formula. However, top investors often share some strategies that have helped them achieve their goals. Let’s explore what some of these are.
It’s like the old saying, “Don’t put all your eggs in one basket.” By spreading investments across various assets, sectors, or geographies, these investors can reduce their risk. If one investment goes down, another might go up, balancing the overall portfolio.
A value investor looks for undervalued companies, stocks or assets that have strong potential for growth. It’s like bargain hunting, but for investments.
Here, investors focus on companies that show potential for above-average growth, even if their stocks are already expensive. The idea is that these companies will continue to grow and the investment will pay off over time.
This strategy is especially popular among those who want a steady income from their investments. This involves focusing on securities that pay dividends or interest, providing regular income to the investor.
Then there’s going against market trends. When everyone is selling, contrarians are buying, and vice versa. It’s a high-risk, high-reward strategy that requires a lot of confidence and market knowledge.
Buy and Hold
They invest in companies they believe in and hold onto these investments for a long time, regardless of short-term market fluctuations.
It’s important to note that these strategies require not only a deep understanding of the market but also a clear awareness of one’s investment goals and risk tolerance. The top investors blend these strategies with their personal insights and experiences, creating a unique approach that works for them. Remember, what works for one investor might not work for another, so it’s all about finding the strategy that aligns with your own financial goals and comfort level.
There you have it, the best ten investors to follow for advice and inspiration.
As you can see, this list consists of a diverse set of voices, and you’ll likely find one whose investment philosophy aligns with yours. Whether you choose to do some copycat investing, learn from the works they’ve published, or study their portfolios to avoid their mistakes is entirely up to you.
However, as you seek inspiration and guidance, you must remember that blindly following anyone isn’t exactly a recipe for success. So, while you keep up with the activities of the gurus featured in this article, remember to always do your due diligence. Don’t fall into the trap of blindly following trends. Be patient while waiting for returns. And don’t be afraid to roll up your sleeves, as sometimes, the profitability of an investment opportunity entirely depends on your willingness to turn it into a success.