Who's Number One? Is Warren Buffett the greatest investor of all time?

Is Warren Buffett the greatest investor of all time?  That question can never be settled.  But a good case can be made for Mr. Buffett.

The table lists a few of the most successful investors in history.

http://spreadsheets.google.com/pub?key=tMLFgBSmLlxG3SxBnf_3eFg&output=html

A couple of them - George Soros and Peter Lynch - show higher compound average annual returns than Mr. Buffett's.  But that doesn't truly settle the debate.

Mr. Lynch, for example, compiled a sparkling 29% annual return as manager of the Fidelity Magellan Fund.  At first blush, that seems to top Mr. Buffett's 27% annual return.  However, during the 13-year stretch when Mr. Lynch was burning up the track, Mr. Buffett did even better:  up 39% a year, according to Morningstar, Inc.

Mr.  Soros, manager of Quantum Fund, also has a higher annual return than Mr. Buffett.  But Mr. Buffett has maintained his performance for a longer time.  Also, notes Edward Macheski, a money manager in Chatham, N.Y.,  Mr. Buffett racked up his king-sized returns without much use of leverage, or debt, to magnify investment results.  Hedge funds, such as those run by Mr. Soros, Michael Steinhardt, and Julian Robertson, often use heavy leverage.

The Buffett record shown in the table is a composite.  From 1957 to 1969, his main investment vehicle was Buffett Partnership Ltd.  In 1965, the partnership acquired a controlling interest in Berkshire, which became Mr. Buffett's main vehicle in 1970.

Source:  John R. Dorfman, The Wall Street Journal, August 18, 1995.