Peter Lynch
While he didn’t start the company, Peter completely revolutionized Fidelity and it’s Magellan Fund. While managing the brand for 13 years, he took the assets of $20 million and grew it to $14 billion. He also surpassed the average return on similar funds by 29% annually. He has some very specific guidelines for investing. He starts out with a common idea of “know what you know”, or, in other words, only invest in what a person understands and already knows about as it makes it easier to know when to buy more or sell. He goes on to state it is impossible to predict the economy, so don’t try to and to avoid long shot investments. Investing only in companies with strong management is important and, before ever buying into a company, the investor should always be able to explain why they are making the investment.
Peter Lynch
Michael Steinhardt
To round out the list, Michael isn’t a flashy name, but he has maintained a 24% compound average annual return over the last 28 years. Each and every year he has seen at least a double in return on investment than the S&P500 average. He also did not do this investment with just individual stocks or mutual funds. He did it with stocks, bonds, currencies and other investments. His strategy focused on the long term by investing in the short term. He did this my holding onto his investments for anywhere from 30 minutes up to 30 days.
Michael Steinhardt
Most of these investment lessons can be used through online stock trading. A stock online broker can help with investments, but by following these ideas and understanding the specifics, stock trading software can help anyone who is looking to get into an online trading method. It is essential to learn from past mistakes and the lessons of these professionals.