Warren Buffett is the richest investor in the world, but when it comes to average annual returns, another person has him beat.
Keep reading to find out who it is…
That investor is Jim Simons.
At the age of 40, Simons quit his teaching job in the math department at Stony Brook University to pursue a career in investing.
His first move was hiring the world’s most talented mathematicians and scientists.
He named the company Renaissance Technologies and secured a secretive campus to protect them from the other sharks of New York City.
Renaissance is famous for its expert management and college-like atmosphere.
It has also compounded money at a 66% annual rate since 1988.
No one has even come close to this record.
That includes Buffett, who has compounded at 22% annually.
At the same time, Simons is worth $24 billion, while Buffett is worth $100 billion.
But why are they so far apart?
The answer is time.
Jim Simon's didn’t find his investment stride until he was 50 years old, meaning he had half as many years as Buffett to compound.
If Simon's had earned 66% for the 70+ year span Buffett has been compounding, he would be worth…
$63 Quintillion.
This is a ridiculous and impractical number.
The point is that when we study successful people like Warren Buffett, we often overlook the key drivers of success.
In this case, that driver is time.
Conclusion
Though you’ll likely never be a billionaire, sound investing can definitely make you a millionaire.
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