6 Richest Stock Traders Not Including Warren Buffett
If you are a budding investor these are the richest stock traders whose biographies you need to seek out next.
For those wondering why we’ve not included the legendary Warren Buffett, it is because he’s a household name that everyone knows. Whereas these five stock traders make for a fascinating research project when looking into trading philosophies and best practices.
Born in Pennsylvania and raised in a middle-class home, Stanley Druckenmiller earned a BA in Economics and quit a PhD to work as an analyst for the Pittsburgh National Bank.
He worked at the bank for only a year before starting his own firm, Duquesne Capital Management. However, things did not go to plan and he was hired by the often politically-tied Forex trader, George Soros.
Under Soros, Druckenmiller managed a portfolio for the Quantum Fund and never looked back. After 12-years working for Soros, he returned to his old firm with massive success.
Famed for spotting the pound crash ahead of the UK’s Black Wednesday Crisis, and a top-down trading strategy, Druckenmiller became one of the richest people in the world. Generously giving several-hundred million dollars in support of education, research, and poverty causes since 2009.
Born in 1957, in Pittsburgh and considered one of the greatest hedge fund managers of all-time. David Tepper’s career began as a credit analyst and became a name on Wall Street for turning struggling companies into profitable ones.
During the 1980s, Tepper profited during the bond market crash by buying bonds from banks that survived after being on the verge of catastrophe. In the 1990s he also founded Appaloosa Management, a hedge fund that now manages over $15-billion in assets.
Born in New York 1936 and considered in the same reverence as Warren Buffett. Carl Icahn’s story began with a family loan that helped buy him a seat on the New York Stock Exchange.
Then in the 1980s, Icahn purchased Trans World Airlines. A troublesome investment that almost went into bankruptcy in the 90s. However, through investments in Apple, Netflix, Time Warner, Revlon, Viacom, Motorola, and many more, Icahn reached a personal value of $17-billion.
However, it is Icahn’s aggressive trading strategies which have made him famous amongst investors. So much so, his investments have often led to a stock’s increased performance. Such is the faith others have in his investment judgment.
Born 1956 in New York, Steven Cohen began his journey as a junior trader in 1978. His career at Gruntal & Co. reached a point where his team was making $100,000 daily.
In 1992 he founded S.A.C Capital Advisors and by 2009 it was managing $14-billion of investments. However, in 2013 the company was fined $1.8-billion for insider trading and was no longer allowed to manage outside investments.
Despite this, Cohen was never directly convicted and continued to invest his own capital. It was alleged that the massively successful TV show Billions is based on Cohen’s S.A.C Capital Advisors days.
Born 1949 in New York, Ray Dalio’s first glimpse into the world of trading came when he worked as a caddy for Wall Street golfers. This early taste must have left an impression as Dalio earned his MBA from Harvard in 1975 and later began his investment company from a two-bedroom apartment. By 2011, Dalio’s company, Bridgewater Associates managed $160-billion in assets.
Dalio wrote Principles, a must-have book for any budding investor. The book takes an uncompromising look at Dalio’s investment philosophy and management. In his guidance for up-and-coming investors, he says that they should keep their integrity and observe experienced traders. Both things everyone reading this should commit to heart.
Born in 1938 in Massachusetts, James Simons is considered the world’s smartest billionaire. By the age of 23, he had earned a Ph.D. in Mathematics. Putting it to use in the creation of an algorithm that would predict price changes of a financial instrument. Through his combination of mathematics and trading, his ideas created what we now call a quantitive investor.
Simons founded Renaissance Technologies in 1982, a quantitative investment company that now manages $80-billion in assets. The firm has also delivered famous studies on string theory, pattern recognition, and much more. This book The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution is a must-read.