Good morning, investors. Today we’re covering, 69 of the world’s greatest investors, which Magnificent 7 stock is currently the cheapest, 11 stocks that delivered 10x returns in the last five years, and much more.

Don’t keep us a secret: Share the email with friends.

And, as always, send us feedback by replying to this email.

NEED TO KNOW

World’s Best Investors

We analyzed 69 of the world's greatest investors.

Everyone wants to beat the market.

But what does elite investing actually look like?

Here are our top findings.

1: Nobody Beat the Market Longer Than Warren Buffett

Warren Buffett holds the most impressive long-term record in modern investing.

For 60 years, he compounded capital at roughly 19.7% annually through Berkshire Hathaway.

That’s nearly double the long-term return of the S&P 500, which averaged around 10.5%.

2: Only Three Investors Beat 30% for 20+ Years

Sustaining 30%+ returns for decades is almost impossible.

Only three investors managed it:

• Ed Seykota (trend following)
• William O'Neil (growth investing)
• Jim Simons (quant models)

These investors represent the extreme edge of performance.

3: Most Legendary Investors Cluster Between 15–30%

Across all 69 investors, the majority fall into the same range:

15% – 30% annual returns.

Many well-known investors fall inside this band:

• Charlie Munger
• Peter Lynch
• John Templeton

The data shows that great investors tend to converge around 18–25% over long careers.

4: Extreme Returns Usually Don’t Last

Short bursts of incredible performance exist.

For example:

• Richard Dennis reportedly produced returns over 100% annually during a 19-year run using futures.

But these results almost always happen during shorter track records.

The Real Ceiling Of Investing

Based on decades of data:

~20% per year appears to be the sustainable upper limit for long-term investors.

Anything far above that tends to occur:

• over shorter periods,
• with smaller capital bases,
• or during unique market environments.

CHART OF THE WEEK

Cheap Big Tech

In 2025, Magnificent Seven returned 25.7% on average.

That’s ahead of the S&P 500, which returned 17.5%.

But while the group performed strongly overall…

Not all Mag 7 stocks are priced equally.

Some currently trade at noticeably lower valuations.

Meta Platforms remains relatively cheaper because investors are concerned about massive AI capital expenditures and ongoing losses in its Reality Labs metaverse division, which continue to pressure profitability.

Microsoft trades at a lower relative valuation because investors worry about heavy AI infrastructure spending and its dependence on backlog growth tied to OpenAI-related demand.

Even inside the same tech megatrend, some companies are priced for perfection, while others are priced for uncertainty.

Adobe’s Decline

Adobe is down 61% from its peak.

The main concern?

Artificial intelligence disrupting creative software.

But when we look at the actual numbers…

The business itself still looks strong.

Adobe’s Q1 2026 results show solid growth:

Revenue: $6.40B (+12% YoY)
Adjusted EPS: $6.06 (beat estimates)
Subscription revenue: $6.17B (+13% YoY)
AI-first ARR: more than tripled year-over-year

The company now has 850 million monthly users (up 17% YoY).

So despite fears around AI disruption, Adobe’s usage and revenue keep expanding.

However, their new leadership transition adds another variable.

Longtime CEO Shantanu Narayen also announced he will step down once a successor is appointed, though he will remain chairman.

Narayen joined Adobe in 1988 and became CEO in 2007, overseeing the company’s transformation into a subscription software powerhouse.

Leadership transitions often add short-term uncertainty for investors.

Nevertheless, Adobe trades at its lowest EV/EBIT multiple in years.

In other words:

The valuation has collapsed, while the business continues growing.

That divergence is what makes the situation interesting.

10x Stocks

Only 11 U.S. stocks became tenbaggers in the past five years.

That shows how rare they actually are.

The term was popularized by legendary investor Peter Lynch, who ran the Fidelity Magellan Fund.

Lynch believed the real winners in the stock market weren’t the safe giants, but small, fast-growing companies that the market hadn’t discovered yet.

His framework was simple.

  1. Start with real life: Great companies often appear in everyday life before Wall Street notices them.

  2. Do the homework: A good product is only the starting point—always analyze earnings, financials, and competitive advantage.

  3. Focus on fast growers: Companies growing 20–30% annually are where most tenbaggers come from.

A company growing 25% per year can become a 10x investment in about a decade (the compelling math of exponential growth).

Finding them isn’t easy.

But Lynch’s key lesson still stands:

Tenbaggers usually start as small, overlooked companies, long before the market realizes their potential.

How To Value Stocks

Investing starts when you buy a stock.

The price you pay determines most of your future return.

That’s why understanding how to value a stock matters so much.

Remember, companies evolve through stages:

Startup → Growth → Mature → Decline.

And each stage requires a different valuation lens.

For example:

Startups: often valued on revenue or users
High-growth companies: EV/Sales or forward growth models
Mature companies: EV/EBITDA or discounted cash flow (DCF)
Declining businesses: asset value or price-to-book

Using the wrong method can lead to massively incorrect conclusions.

That said, valuation models rely on math.

But the best investors know something else matters even more.

Common sense.

Legendary investor Warren Buffett once said:

“It’s better to be approximately right than precisely wrong.”

Other Big Things

🍟 Value Menu – McDonald’s plans to introduce menu items priced at $3 or less in the United States starting in April to attract budget-conscious customers.

📊 Ackman’s Vision – Bill Ackman wants Pershing Square Capital Management to evolve into a modern version of Berkshire Hathaway.

🛢️ Oil Shock – The war involving Iran has triggered the largest oil supply disruption in history, with global production expected to drop sharply.

🛫 Flight Costs – Airfares are starting to rise as higher jet fuel prices push up airline operating costs.

💼 Bank Relief – Wall Street banks gained relief after the Federal Reserve proposed easing capital requirements for large lenders.

🤖 AI Alliance – Palantir announced new partnerships with Nvidia and several defense groups to expand its artificial intelligence software capabilities.

🛒 IPO Setup – Flipkart, owned by Walmart, is relocating its headquarters to India. The move signals preparation for a potential IPO.

Keep Reading