Investing is meticulous construction of hypotheses and models, verification, correction, re-verification. The strategies of the most successful investors are born in experience, in defeats, in the struggle with emotions. Let’s analyze the approaches and thinking of Buffett, Graham, Lynch, Icahn, Bogle, Munger, and Templeton, show how they built capital, and how to adapt tactics to the modern market.
Before Buffett became a legend, he studied Graham. Benjamin formulated the idea of “value investing” — to seek assets cheaper than their intrinsic value. Graham approached quotes as a wave movement: markets often overvalue and undervalue. He developed the concept of “margin of safety” — buying with a margin of strength so that the price could fall but not destroy capital.
Graham advised focusing on P/E and P/B ratios — taking stocks where P/E < 12 and P/B < 1.5 (in his time). He divided the market into “investors” and “speculators” — and recommended being the former. His ideas evolved into key tactics: not chasing hype, not buying “everything in sight,” analyzing assets.
Warren Buffett developed Benjamin’s ideas but added his personal vision. His tactic was to focus on the business, not on the papers. Buffett sought companies capable of generating profits for decades: a stable brand, stable margin, strong management. He took stocks that he could hold “forever” and analyzed free cash flow. If a company generates dividends or can buy back its own shares and remain stable — Warren invested.
Buffett warned: “the market is a mechanism for transferring money from the impatient to the patient.” In years when it stagnated, Warren often waited, not rushed: in 1988, he started buying shares of The Coca-Cola, held positions for decades. Investments of a few dollars grew into a fortune measured in billions. Thus, the strategies of the most successful investors include patience, a long-term view, not just quarters.
Peter Lynch is a bright representative of active investing. He believed that the individual investor often has an advantage: they see companies in everyday life before the market notices them. Lynch looked for growth stories: firms expanding in niches, services, stores, brands. He used PEG (P/E ratio to earnings growth rate) and looked at EPS growth. Peter rejected the idea of “finding one big stock” and preferred a portfolio of multiple medium companies with growth potential of 3–5 times in 5 years.
Example: in the 1980s, Lynch picked retail chains, retail, restaurants that grew through expansion, not through debt. The Magellan portfolio showed an average annual return of over 29%. Lynch demonstrated how the most successful investors invest — by observing competitors, customers, and the market, often spontaneously.
Carl Icahn became a major shareholder, joined the board of directors, initiated reforms. His strategy was not just to be an investor but to be an agent of change. He chose companies with inefficient management, exerted public pressure, demanded reshuffles, divided assets. After increasing shareholder value, he sold part of the shares. Icahn entered eBay, pushed for the separation of PayPal, sold part after the growth. Similarly in TWA, Motorola. This approach is not for everyone — it requires weight and resources. But the strategies of successful investors also include such a model: not waiting but transforming companies from within.
John Bogle proposed a simple system: buy the entire market and hold it. He created Vanguard and index funds, minimized fees, aimed for low volatility. John claimed that active managers rarely outperform the market after accounting for costs. If the market’s average return is 10% annually, subtract 2% expenses — you’re left with 8%. Bogle recommended broad funds: S&P 500, Total Market. The key is minimal turnover, minimal fees, a long-term horizon. This investment strategy suits those who do not want to pick stocks and do not want to emotionally react to news.
Charlie Munger complemented Buffett’s logic with psychological intuition. He said not to be of “average” interest — concentrate on truly interesting assets. Charlie followed the principle: if the logic is not convincing — do not invest. He rejected hundreds of opportunities but invested when he saw a sustainable advantage.
Munger often spoke of “smart penalties” — when a company does something wrong, it pays. He looked for firms with management culture, focusing not on growth at any cost but on quality. Charlie supported discipline: not to expand the portfolio to 100 stocks, to maintain a narrow focus. The strategies of the most successful investors also include an aspect of philosophical selection — not taking everything but choosing carefully.
John Templeton oscillated against the crowd. He acquired assets when fear gripped the market and sold when euphoria appeared. John entered crisis economies, bought cheap stocks in countries with defaults, and either took them out or reoriented them. Before World War II, he bought many small companies that cost a dollar or less. Of 104, Templeton held 70 and achieved huge returns in the post-war period. This method requires courage and risk, but it shows: how to become successful investors — act against the common opinion.
None of the systems guarantees success in its pure form. An investor can combine investment strategies into a single structure:
Such a portfolio combines stability, growth, and the opportunity to participate for high returns. Diversification by sectors (technology, consumer goods, healthcare) and countries (USA, Asia, Europe) reduces risk. Cost control (fees, taxes) is the key to high returns. Inexpensive brokers, ETFs with low TER, minimal turnover — everything matters.
The strategies of the most successful investors are born at the intersection of logic, psychology, and system. Graham laid the foundation, Buffett built a reliable house, Lynch added intuition, Icahn — activism, Bogle — calm dominance, Munger — morals and culture, Templeton — courage against the tide. Anyone who wants to become a successful investor should not copy but adapt: choose their own combination of philosophies, build discipline, learn from failures, and seek a balance of risk and return.
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