The most famous in historyfinancial advisorsis known for very different reasons. This includes successful onesinvestorswho share their knowledge with the masses, TV celebrities who write books and criminals who have stolen millions of dollars. Ten of the most famous financial advisors are discussed below.
Key learning points
- Famous financial advisors have become household names for several reasons.
- Benjamin Graham and Warren Buffet are among the most common traditional financial advisors who leaned heavily on value investing.
- Several financial advisors such as Dave Ramsey and Robert Kiyosaki are best known for their print publications.
- TV personals, including Suze Orman and Ben Stein, are recognizable financial advisors.
- Charles Ponzi and Bernie Madoff made names for their financial crimes.
Benjamin Graham
Benjamin Grahamis known as the father ofvalue investmentinvolving identification and purchaseundervalued stocksthat has the potential to grow over time. To calculate a company's intrinsic value, his approach eschews trends and popular ideas and relies instead on careful research, thorough financial analysis and patience – standard concepts today, but revolutionary when he introduced them in the 1920s.
Graham's disciples include many of the most successful investors of the past 70 years. His 1949 bookThe intelligent investorremains a must-read for all asset managers and stock traders, regardless of their investment approach.
Warren Buffett
Investor Warren Buffett, the “Oracle of Omaha,” is one of Graham's most famous supporters. Buffett has openly attributed his remarkable track record to Graham's principles.Graham's one rule, which Buffett doesn't always follow, is diversification: he often prefers to concentrate investments in companies.
3,787,464% gain
If you had invested $1 in Berkshire Hathaway in 1964, your investment would have been worth $3,787,464 at the end of 2022.
After delivering significant profits to his original partners, Buffett went public with the purchase of Berkshire Hathaway Inc.BRK-A) in late 1964, making it the holding company for its other investments.The compound annual growth rate for Berkshire Hathaway from 1965 to 2023 is a whopping 22.1%, one of the best long-term results.
Peter Lynch
Peter Lynch directedFidelity Magellan Fonds(FMAGX) from 1977 to 1990. During his tenure, he returned investors 29% annuallycomposedyield.After leaving the fund, Lynch wrote three best-selling books outlining his investment philosophy and emphasizing that small investors can outperform large asset managers in the stock market.
Dave Ramsey
Dave Ramsey is a radio and television personality who has written eight best-selling books. On “The Dave Ramsey Show,” a syndicated radio show, he takes calls from people with financial problems and tells them the solutions. His underlying philosophy is debt-free living. He advises people on concrete steps to get out of debt and never get into it again.
Suze Orman
An Emmy Award-winning television host and bestselling author of several books,Suze Ormanis known for her brash and pushy style, which she conveys with a smile. Her appearances on 'The Oprah Winfrey Show' and 'The Today Show', as well as a column on 'The Oprah Winfrey Show' and 'The Today Show'Omagazine, has made her one of the most famous and recognizable financial advisors of all time.
Jim Kramer
Hedge fund manager turned TV presenter,Jim Krameris known for his CNBC show 'Mad Money'. The show is known for its brash, loud, fast-paced style. Cramer also had his own website, TheStreet.com, which offers dealsWall Street-related news, comments and advice.In 2021, Cramer announced he was leaving TheStreet. During his television appearances, Cramer is also known for some historically poor stock picks.
Robert Kiyosaki
The author of the bestsellerRich dad poor dadbook series, Robert Kiyosaki also teaches seminars on personal finance and real estate (franchised through his Rich Dad company).His basic philosophy: Create passive flowsinvestment returnsand cultivate them until they can support you without you having to work. Kiyosaki's bestseller has sold more than 32 million copies and been translated into more than 40 languages.
Ben Stein
The well-known actor and former host of Comedy Central's "Win Ben Stein's Money" is a former economist and law professor. His Hollywood personality makes him a frequent guest on various financial news broadcasts. His advice and opinions are clear and to the point.
Charles Ponzi
Charles didn't invent Ponzipiramidespel, but his version was so daring that all subsequent scams of a similar nature bear his name asPonzi-schema's. In 1919-1920, under the direction of a firm called the Securities Exchange Company, he promised returns of 50% in 45 days or 100% in 90 days.Due to its reputation for success in stamp coupon arbitrage, investors were immediately attracted.
Ponzi Scheme Punishment
Pyramid schemes like these are not without serious fines from the federal government. Bernie Madoff pleaded guilty to eleven crimes in 2009 and was sentenced to 150 years in prison.
Instead of actually investing the money, Ponzi simply redistributed it and told the investors they were making a profit – while pocketing a significant portion of the proceeds for himself. As long as new investors put money into the Ponzi scheme, there would always be enough cash flow to return the capital (and "profits") to the investors who came before them.
Bernard Madoff
Bernie Madoffwas perhaps Charles Ponzi's most infamous disciple. Madoff previously ran a legitimate securities firm and served as chairman of Nasdaq for three years in the 1990s. He used this operation as a front for the creation of ahedge fundsA division that, although he pretended to use advanced trading strategies, was a total fiction: he simply deposited new money into a single bank account, which he used to pay existing customers who wanted to cash out.
Yet the returns and his reputation worked so well that thousands of rich and famous people, and even other hedge funds, invested with him. It was only thenThe 2008 financial crisisleft Madoff unable to keep up with repayments as his operation was exposed as a $65 billion Ponzi scheme. Madoff died in prison on April 14, 2021.
Who is the most famous financial advisor?
Most investors today probably recognize Warren Buffett's name, as he has long ties to the financial advisory industry. His investment style is derived from Benjamin Graham, another famous financial advisor. Other well-known financial advisors in the media include Suze Orman, Jim Cramer and Dave Ramsey.
Does it cost money to talk to a financial advisor?
Most local financial advisors are willing to host free meet-and-greet sessions. This consultation is a good way to learn more about the advisor, his strategy and whether you want to entrust him with the management of your finances. When you work with a financial advisor, there are often commissions or fixed fees.
What is the difference between a financial planner and a financial advisor?
A financial advisor is someone who helps his clients manage their money. They have a broader range of services and can often help with short-term or operational aspects of finance.
A financial planner is a financial professional who helps create strategies to achieve long-term goals. Financial planners pay more attention to long-term strategy and achieving long-term goals.
In short
Famous financial advisors and successful investors are always a timeless source of inspirationbron van expertiseand knowledge for all types of investors. For specific advice, money management strategies and achieving long-term financial goals, investors and consumers can turn to the services offinancial advisorsInfinancial planners.
