Those with exceptional financial management managers are the equivalent of rock stars in the business world. Many people are familiar with the name Warren Buffett. Still, stock nerds are more likely to discuss Benjamin Graham, John Templeton, and Peter Lynch because of their extensive dissertations on each individual's investing philosophies and success.
Let's have a look at the factors that went into determining the top on our list before we get to the ones who cut the very best:
Benjamin Graham is widely regarded as the founder of the field of security analysis; nonetheless, few people would think of him as a fund manager. Despite this, he is still eligible for inclusion on our list since, between 1936 and 1956, he co-managed what would be the equivalent of a closed-end mutual fund with his business partner Jerome Newman.
Deep value investing.
GEICO. Graham-Newman stockholders received it as a spin-off for $27 per share, and its value eventually increased to $54,000 per share. Graham's acquisition of GEICO would prove to be his most profitable venture, even though it seemed to be a different match from his approach of offering large discounts. Most of Graham's holdings were liquidated in less than two years, but he maintained his investment in GEICO for many years. Most of his money was put into various low-risk arbitrage transactions.
Reports differ depending on the period in question and the computation techniques employed; nonetheless, John Train stated in Money Masters (2000) that Graham's fund, Graham-Newman Corporation, gained 21% annually over course of 20 years.
Forbes magazine has referred to Templeton as "the dean of global investment," and Queen Elizabeth II has honored him with the rank of knighthood for his contributions to charitable causes. In addition to his work as a philanthropist, Templeton was a Rhodes Scholar, a CFA charter holder, a gift to Oxford University, and a pioneer in global investment. He was an expert at locating the most lucrative opportunities in times of economic turmoil.
Value investor with a global contrarian perspective. He planned to acquire investment vehicles at what he termed "the moment of extreme pessimism," which he believed was the optimal time to do so. At the beginning of World War II, Templeton put this concept into practice by purchasing shares in every public European firm that was trading for less than $1 per share. Among these companies were numerous that were already in the process of declaring bankruptcy. He was able to do this with $10,000 in borrowed funds. After four years, he decided to sell them and got $40,000 for them. His venture into the world of investments was made possible by his profit from this endeavor. In addition to this, Templeton looked for basic success stories that were undervalued all across the globe. He was determined to find out which nation was on the verge of a turnaround before anyone else knew the tale.
Between 1954 and 1987, he served as the Templeton Growth Fund manager. If the dividends had been reinvested, a $10,000 investment in Class A shares in 1954 would have grown to almost $2 million by 1992 (the year he sold the firm), equivalent to an annualized return of 14.5%.
T. Rowe Price began his career on Wall Street in the 1920s and established an investing business in 1937; however, he only launched his first fund after a significant amount of time had passed. Price finally made the company public in the middle of the 1980s after selling it to its workers in 1971. It is standard practice to attribute to him the adage, "What is good for the customer is also excellent for the business."
Value and potential for future expansion. Price made investments in businesses that he believed had strong management, were operating in "fertile fields" (promising long-term sectors) and were in a position to dominate their respective industries. Price looked for businesses that could demonstrate consistent growth over a long period since he desired to keep his assets for many decades.