Better Than Buffett?

Smart Money Dispatch

Warren Buffett is widely regarded as the world’s most successful investor. But there are a handful of other billionaires who could give Buffett a run for his money.

According to Bryan Rich of Logic Fund Management, “Carl Icahn has the best long-run investing track record in history. Yes, better than Warren Buffett, and over a slightly longer period of time.”

Better than Buffett? A case can be made…

“From 2000 to July of this year, Icahn returned a cumulative 1,622%. That compares to 235% for Buffett’s Berkshire Hathaway, and just 73% for the S&P 500. Icahn has returned 27% annualized over a 52-year period. That turns $10,000 into $2.5 billion.”

Icahn isn’t well-liked by all, especially underperforming corporate executives. He takes an activist approach to investing by which he puts the screws
to management and holds CEOs accountable to shareholders.

Six Stocks that Could Get the
Icahn Boardroom Boost

Icahn wields the most influence (and typically enjoys the best returns) in companies where he sits on the board. Icahn has taken out large positions in he following six stocks where he also holds board seats:

  • Herbalife Ltd. (HLF)
  • Hertz (HTZ)
  • Hologic (HOLX)
  • Navistar (NAV)
  • Nuance (NUAN)
  • Transocean Ltd. (RIG)

Don’t Put Too Much Faith in Gurus –
Especially the Ones Who Levy Hefty Fees

We don’t recommend following the stock picks of Carl Icahn or any market guru blindly. Not all of his holdings will show stellar performance over any given period.

But you can piggyback off the research and acumen of top gurus. Just focus your own stock screening process on companies that have already passed muster with world’s top investors. You’ll simplify your research without sacrificing expected returns.

It’s not the investors who spend the most time researching companies who enjoy the best returns. Remember, most investors – including professional money managers – do no better than random stock selection! It’s better to pick stocks at random or buy low-cost market index funds than to put your faith in a fund manager who charges hefty fees for managing your portfolio.

There’s no sure-fire way to beat the market averages. Very few do so consistently over time. Carl Icahn is one investor who has done so. It’s worth considering the possibility that he and others who have been successful in this industry for many decades still know what they’re doing.