The stock market is a volatile place that requires patience, risk tolerance, and thorough research. And those who make it to the top of Wall Street are also likely to be among the richest people in the world. Today's top investors share a strategy for financial success: They all took calculated, high stakes risks in hedge funds. Here are six of Wall Street's top earners and the hedge funds they manage.
Key Takeaways
- Certain billionaires made their fortunes in the stock market.
- The list includes John Paulson, Warren Buffett, James Simons, Ray Dalio, Carl Icahn, and Dan Loeb.
- Buffett is by far the richest person of these six famous investors, with a net worth of $116 billion.
1. John Paulson
Unlike most people, John Paulson benefited from the mortgage crisis. Back in 2006, he was already predicting the housing market crash and created two hedge funds dedicated to betting against subprime mortgages. His hedge fund, Paulson & Co.—founded in 1994—had assets under management that topped $36 billion at its peak. In 2020, he announced plans to convert Paulson & Co. into a family office and return money to outside investors and has a net worth of $4 billion.
2. Warren Buffett
Warren Buffett, nicknamed the "Oracle of Omaha" is considered one of the greatest investors of all time. He is one of the top 10 richest people in the world with a net worth of $116.5 billion. Buffett is the chairman and largest shareholder of Berkshire Hathaway (BRK.A), which owns over 60 companies, including Geico and Dairy Queen.
3. James Simons
This mathematician turned hedge fund manager has a net worth of over $24 billion, founding his hedge fund Renaissance Technologies LLC in the early 80s after teaching at Harvard, cracking codes for the U.S. Defense Department, and earning a Ph.D. from UC Berkeley. His key to success has been trading algorithms and computers. Simons retired in 2010, but he continues to support autism research and has a nonprofit called Math for America.
4. Ray Dalio
Ray Dalio is the founder and chief investment officer (CIO) of Bridgewater Associates, the world's largest hedge fund—which manages $154 billion. Many credit his untraditional management approach, which calls for complete honesty, accountability, and transparency from himself and all of his employees, as his secret to success. Dalio made his first investment at age 12 and started Bridgewater in 1975. Dalio has a net worth of $20 billion.
5. Carl Icahn
Carl Icahn has a net worth of almost $17 billion. Icahn runs the publicly-traded investment vehicle Icahn Enterprises. He advised the Trump Administration on regulatory overhaul during the first few months of Donald Trump taking office. His trademark is buying out fledging companies and turning them around.
6. Daniel Loeb
Daniel Loeb is known for writing no-holds-barred letters to the CEOs of companies that he is invested in when he feels they aren't bringing him big enough returns. Loeb graduated from Columbia University in 1983. His hedge fund, Third Point Management, manages roughly $19 billion. Loeb has a net worth of $4 billion.
FAQs
Certain billionaires made their fortunes in the stock market. The list includes John Paulson, Warren Buffett, James Simons, Ray Dalio, Carl Icahn, and Dan Loeb. Buffett is by far the richest person of these six famous investors, with a net worth of $116 billion.
Who was the richest person on Wall Street? ›
| Warren Buffett |
|---|
| Buffett in 2015 |
| Born | Warren Edward Buffett August 30, 1930 Omaha, Nebraska, U.S. |
| Education | University of Pennsylvania University of Nebraska–Lincoln (BS) Columbia University (MS) |
| Occupations | Businessman investor philanthropist |
11 more rows1. Warren Buffett: Warren Buffett is the CEO and chairman of Berkshire Hathaway, and he is one of the Top 10 Richest Investors in the World. His success can be seen through his unique strategies and approaches to investing.
How did Warren Buffett get rich? ›
His fortune is largely tied to his investment company.
The vast majority of Buffett's net worth is tied to Berkshire Hathaway, his publicly traded conglomerate that owns businesses like Geico and See's Candies and holds multibillion-dollar stakes in companies like Apple and Coca-Cola.
Who is the greatest Wall Street trader? ›
- Jesse Livermore.
- William Delbert Gann.
- George Soros.
- Jim Rogers.
- Richard Dennis.
- Paul Tudor Jones.
- John Paulson.
- Steven Cohen.
Of the many titans who move America's wealth, there is one who stands above them all. His name is Laurence D. Fink and he managed to create the world's most powerful investment firm.
Are there any trillionaires? ›
As of today, no billionaire is within striking distance of becoming a trillionaire.
Who is the most famous investor of all time? ›
Warren Buffett
Buffett might be the most famous investor of all. Known as the "Oracle of Omaha," he worked for and learned from Graham until the value investing pioneer retired. Buffett then proceeded to establish his own investing partnership to focus on buying stakes in quality companies at fair prices.
Who is the youngest billionaire? ›
Clemente Del Vecchio
Clemente was at one time the world's youngest billionaire (at the age of 18), but he has since aged out of that title, which is now held by Livia Voigt.
What kind of car does Warren Buffett drive? ›
Buffett, who's driven a Cadillac for decades, only decided to replace his 2006 model after Barra visited him in his hometown of Omaha in May 2014. The investor's Berkshire Hathaway had invested in GM in 2012.
That's up substantially from the $84.5 billion net worth Buffett had at the time Housel's book was published in 2020. Most of that wealth came in Buffett's later years, Housel wrote, with $84.2 billion after he turned 50 and $81.5 billion after he turned 65.
Who inherits Warren Buffett's money? ›
Famously frugal Warren Buffett has always been clear his billions won't go to family—it'll be invested in charitable foundations, a fitting end to a career of philanthropy.
Who is the most successful person in the stock market? ›
Rakesh Jhunjhunwala
Because of this some people also call him the big bull of the Indian stock market. He has great ability in predicting stock market movements although he had holdings in Star Health Titan Company and Tata Motors.
Who has made the most money off the stock market? ›
Warren Buffett started investing at a young age, buying his first stock at age 11 and his first real estate investment at age 14. Buffett studied under the legendary value investor Benjamin Graham while pursuing a business degree at Columbia University (Harvard had rejected him).
Who is the richest person from the stock market? ›
Who is the greatest investor of all time? ›
Warren Buffett is widely considered the greatest investor in the world. Born in 1930 in Omaha, Nebraska, Buffett began investing at a young age and became the chairman and CEO of Berkshire Hathaway, one of the world's largest and most successful investment firms.
