Bill Gross

AAA

DEFINITION of 'Bill Gross'

Legendary bond investor who founded Pacific Investment Management Company (PIMCO), the largest bond fund in the world as of 2014. William H. Gross is notably known in the investment world as the king of bonds.

Bill Gross was born in 1943 in Middletown, Ohio. He graduated from Duke University with a degree in psychology after which he joined the military at the age of 24 and was deployed to Vietnam. After his military service, Gross went on to business school at the University of California in Los Angeles.

INVESTOPEDIA EXPLAINS 'Bill Gross'

In 1971, with only about $12 million of assets, Gross founded PIMCO with friends Jim Muzzy and Bill Podlich. As of the first half of 2014, assets under management by PIMCO had grown to almost $2 trillion, making it the largest active fixed income fund management firm in the world. He credits his mathematical prowess and risk instincts to blackjack. After earning his undergraduate degree, Gross set out to Vegas where he worked at the blackjack tables, counting cards for up to 16 hours a day. From his months of counting cards, he learnt a vital lesson which he applies in his investment decisions: taking too much leverage and having too much debt will bring the house of cards tumbling down. Gross started out with $2,000 in his pockets in Vegas and left with $10,000 after four months.

Bill Gross left PIMCO in September 2014 to manage a smaller fund with Janus Capital Group. Much like popular investment gurus in the financial world who are market movers and shakers, an investment by Bill Gross made public would impact the financial market. On the day his move to Janus was publicly announced, Janus share price climbed 43% representing a historical one-day gain for the company. Also, the fund managed by Gross saw its assets under management climb to almost $80 million at the end of September 2014 from $13 million at the end of August 2014.

From learning about risk at the gambling tables to creating spectacular returns from his fixed income investments, Bill Gross is also a successful stamp collector. There is a William H. Gross Stamp Gallery at the Smithsonian National Postal Museum. In 2005, he formed a complete collection of 19th century United States postage stamps. In 2013, he auctioned off a collection of British stamps from which he collected proceeds of about $9 million.

All of Gross’s $9 million dollar auction proceeds went to Doctors Without Borders. Proceeds collected from his Finnish and Scandinavian stamps went to Columbia University. In addition to his philanthropic offerings, he has also donated millions of dollars to Duke University, University of California, Cedars-Sinai, and Mercy Ships.

As of 2014, he is one of the top self-made billionaires and powerful people in the United States according to Forbes.

Bill Gross has three kids and is married to Sue Gross.

 

RELATED TERMS
  1. Mark Zuckerberg

    Self-taught computer programmer and self-made multi-billionaire ...
  2. Amancio Ortega

    Spaniard Amancio Ortega founded the world’s largest fashion ...
  3. Sheldon Aldeson

    Sheldon Aldeson, chairman and CEO of Las Vegas Sands Corp., is ...
  4. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online ...
  5. PIMCO (Pacific Investment Management ...

    PIMCO is a global investment management firm that specializes ...
  6. Julian Robertson

    A former hedge fund manager and investor, Julian Robertson founded ...
Related Articles
  1. Pimco has been in the news lately. What does the giant investment manager firm do and who does it serve?
    Mutual Funds & ETFs

    Understanding The Bond Behemoth That ...

  2. When you business is built on prudence and trust, a lot can go wrong to cost you tons of clients and assets. Here are a few examples.
    Investing News

    Fund Firm Jolts: Pimco's Isn't The First ...

  3. Few people build a multi-billion dollar business and leave it. But these did just that.
    Investing News

    What Bill Gross, Steve Jobs and Steve ...

  4. Rockefeller chose the refining business, where the profits were smaller but more stable.
    Economics

    J.D. Rockefeller: From Oil Baron To ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center