The career annualized return on investment of top investment masters

Table of Contents

My creteria

The criteria for the investment masters selected in this article mainly include the following:

Several mainstream ways of stock market investment, including stock funds, quantitative investment, value investment, and hedge funds.
Among the several mainstream ways of investing in each stock market, it is recognized as the one with the highest salary (main standard) and the one with the largest capital scale in the world (secondary standard)
The investment career must be long enough, because we only care about the annualized return on investment for the entire career

Stock Fund Manager: Peter Lynch

Peter. During the 13 years when Lin Chu served as the fund manager of Magellan Fund, the annualized rate of return of the fund reached 29.2%, which is an astonishing and rare investment performance. He was named the world’s best fund manager by Time magazine and the most legendary fund manager in history by the American Fund Rating Company.

Quantitative investor: James Simons

James Simons is the greatest quantitative investor of all time. His Medallion Fund has a total of 31 years from 1988 to 2018, with an average annualized rate of return of 66.1% and a deduction of fees as high as 39.1%. This is the greatest lifetime investment cumulative effect of any published investor that I know of.

I checked all the information on the Chinese and English Internet and his related books. Simmons is the only investor who is closest to perfection──His Medallion Fund only had a negative return on investment in 1989. That’s an amazing achievement.

Value Investor: Buffett

Buffett has had a total of 57 years from 1965 to 2021, and only 11 years have had a negative annual return on investment, with an annualized return of 20.1%. With the size of the funds under Buffett’s control, this is a “very, very” difficult achievement.

In the book “The Rules of Super Growth Stocks Investing“: Section 1-1, page 21, in the discussion on the theme of “Long-term investment will be successful”, I have analyzed Simmons and Buffett for you.

Hedge fund manager: Dalio

One of the world’s largest hedge funds, Raymond Dalio’s Bridgewater Fund’s Bridgewater Fund has an annualized rate of return of 11.4% since its inception in 1991 to the first half of 2022 (the S&P 500 index includes dividends The annualized rate of return for the same period is 11.24%). In the hedge fund industry, considering the size of his capital and the duration of the fund, it is considered a top performer, but it is almost the same as the S&P 500 index representing the US stock market.

Conclusion

	Fund size (US$ billion)	Period	Number of total investing years	Annualized return	Number of negative return years
Buffett	350	1965-2021	57	20.1%	11
James Simons	34.8	1988-2018	31	39.1%	1
Peter Lynch	14	1977-1990	13	29.2%	–
Dalio	100	1991-2022	32	11.4%	–

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