1. Greatest Investors: Introduction
  2. The Greatest Investors: John (Jack) Bogle
  3. The Greatest Investors: Warren Buffett
  4. The Greatest Investors: David Einhorn
  5. The Greatest Investors: Stanley Druckenmiller
  6. The Greatest Investors: David Dreman
  7. The Greatest Investors: Philip Fisher
  8. The Greatest Investors: Benjamin Graham
  9. The Greatest Investors: William H. Gross
  10. The Greatest Investors: Carl Icahn
  11. The Greatest Investors: Jesse L. Livermore
  12. The Greatest Investors: Peter Lynch
  13. The Greatest Investors: Bill Miller
  14. The Greatest Investors: John Neff
  15. The Greatest Investors: William J. O'Neil
  16. The Greatest Investors: Julian Robertson
  17. The Greatest Investors: Thomas Rowe Price, Jr.
  18. The Greatest Investors: James D. Slater
  19. The Greatest Investors: George Soros
  20. The Greatest Investors: Michael Steinhardt
  21. The Greatest Investors: John Templeton
  22. The Greatest Investors: Ralph Wanger

Born: 1944 (Middletown, Ohio)

Key Positions: Pacific Mutual Life Insurance Company

Pacific Investment Management Company (PIMCO)

Janus Capital Group

Personal History:
Bill Gross earned a degree in psychology from Duke University in 1968 before eventually entering the business world. He holds an MBA from UCLA’s Anderson School of Management and also spent time early in his career in the Navy and as a professional blackjack player. Following his completion of the Certified Financial Analyst (CFA) program, Gross worked as an investment analyst with Pacific Mutual Life in Los Angeles from 1971 to 1976, then as an Assistant Vice President in the fixed income securities area until 1978. From 1971 until 2014, Gross acted as managing director and chief investment officer for Pacific Investment Management Company (PIMCO), which he founded. PIMCO has consistently been one of the world’s leading mutual fonds and focuses primarily on bonds.

Gross was inducted into the Fixed-Income Analyst Society, Inc. (FIASI) Hall of Fame in 1996, the first portfolio manager to earn that distinction, for his contributions to bond and portfolio analytic practices. PIMCO was purchased by Allianz SE in 2000, although the firm has continued to operate as an independent subsidiary. Gross left PIMCO in September of 2014 to join the Janus Capital Group.

Investment Philosophy:
Gross is known for his willingness to change directions in response to changes in the markets. In July 2005, SmartMoney.com’s Nicole Bullock observed that “Gross doesn’t adjust to market conditions – he changes them! His views on the bond market are widely followed by professional investors and the investing public worldwide.” Gross focuses on investments that will be successful in the long term based on their structural composition within a portfolio over a longer span of time. He focuses on a three- to five-year forecast, which encourages an investor to think long term and disregard shorter term flights of fancy. A strong proponent of separating out emotions from investing, Gross believes that “emotions can convince any investor or management firm to do exactly the wrong thing during irrational periods in the market.”

Noteworthy Publications:

  • Bill Gross On Investing" by William H. Gross (1998)
  • "Everything You've Heard About Investing Is Wrong!: How To Profit In The Coming Post-Bull Markets" by William H. Gross (1997)
  • "Bond King: Investment Secrets From PIMC's Bill Gross" by Timothy Middleton (2004)

Quotes:

"Finding the best person or the best organization to invest your money is one of the most important financial decisions you'll ever make."

"Do you really like a particular stock? Put 10% or so of your portfolio on it. Make the idea count … Good [investment] ideas should not be diversified away into meaningless oblivion."

"The genius of Bill Gross, from the gaming tables to the high-tech world of bond trading, is his knowing, quantifying and playing risk." (Timothy Middleton, "The Bond King")

"Bill often has been characterized as the Peter Lynch of the bond markets. But based on his longevity … and the size of his assets under management … it would be more appropriate to characterize Peter Lynch as the Bill Gross of the equity markets." (Jack Malvey, Lehman Brothers, 1996)


The Greatest Investors: Carl Icahn
Related Articles
  1. Insights

    Here's How Bill Gross Became a Millionaire

    Learn how Bill Gross, co-founder of PIMCO and its Total Return Fund, became known as "The Bond King" and left PIMCO as a billionaire.
  2. Financial Advisor

    Grading Bill Gross at Janus

    Learn about how Bill Gross, once the head of the largest mutual fund in the market, has had poor investment results at his new fund.
  3. Investing

    PIMCO - How It Has Fared Since Its Gross Departure

    Learn about how PIMCO has seen massive outflows of investor capital since Bill Gross left the firm. Read about the recent performance of its bond funds.
  4. Investing

    Pimco Investor? Consider This Before Bailing

    If you own a Pimco bond fund, consider this advice before you drop the firm over the departure of Bill Gross.
  5. Financial Advisor

    Alternatives To Pimco's Total Return Fund

    News of Bill Gross’ resignation has roiled the fixed income market. Given the sizable outflows from the Total Return fund, here are some alternatives.
  6. Investing

    Mohamed El-Erian Vs. Bill Gross: The Two Bond Kings (C, JNS)

    Discover how Bill Gross and Mohamed El-Erian, two investors who preach eliminating emotion from investing decisions, let emotion and hubris end an era at PIMCO.
  7. Managing Wealth

    Where Does Bill Gross Keep His Money?

    Discover how Bill Gross, one of the world's most successful and eccentric billionaires, invests his money and why he plans to give it all away.
  8. Investing

    Pimco and Vanguard: A Tale of Two Fund Managers

    A look at the similarities and differences of asset management giants Pimco and Vanguard.
  9. Investing

    Understanding The Bond Behemoth That Is Pimco

    Pimco has been in the news lately. What does the giant investment manager firm do and who does it serve?
  10. Financial Advisor

    One Year After: PIMCO Total Return Fund (PTTRX)

    A look at the PIMCO Total Return fund almost a year after Bill Gross' departure.
Frequently Asked Questions
  1. How does the price of oil affect the stock market?

    Read about how the price of oil might impact the stock market and why economists have not been able to find a strong correlation ...
  2. What are the differences between gross profit and net income?

    Find out how companies determine gross profits and net income, and how these figures provide quick snapshots of their financial ...
  3. How does Twitter (TWTR) make money?

    Learn how Twitter earns revenue, including the company's use of three targeted advertising streams and data farming and licensing.
  4. I'm about to retire. If I pay off my mortgage with after-tax money I have saved, I can save 6.5%. Should I do this?

    Only you and your financial advisor, family, accountant, etc. can answer the "should I?" question because there are many ...
Trading Center