Considered the “king of bonds,” Bill Gross is the lead manager of bond fund in the world. As founder and managing director of PIMCO family of bond funds, he and his team of professionals in bonds have more than $ 600 billion in fixed income assets under management.
In 1996, he was the first portfolio manager inducted into the Hall of Fame of the Society of analysts of fixed income securities (FIASI) for his great contribution to the development of bond and portfolio analysis.
Among other investment features Gross is known for his ability to change direction without hesitation in response to changes in the markets. In July 2005, Nicole Bullock from SmartMoney.com noted that “Gross does not adjust to market conditions – he changes them! His views on the bond market are widely followed by professional investors and the investment community worldwide.”
Gross graduated from Duke University with a degree in psychology in 1966. Part of his “informal” education included spending the summer playing professional blackjack in Las Vegas. After graduation, he served as a naval officer on destroyer off the coast of Vietnam.
After the war, Gross received at the Business School and received his master’s degree (MBA) in 1971 at the University of California, Los Angeles. He received his diploma as a Certified Financial Analyst (CFA), while working as an investment analyst at Pacific Mutual Life in Los Angeles in 1971-1976
His last assignment in Pacific Mutual from 1976 to 1978 as an assistant vice president of government securities with fixed income. Gross founded and was CEO and chief investment officer at Pacific Investment Management Company (PIMCO), the largest management company of fixed income securities in the world since its establishment in 1982.
In October 2005, in the comment editor of MarketThoughts.com – Henry K. wrote that Bill Gross “believes that successful long-term investment (whether in bonds or shares) is based on two pillars: the ability to formulate and articulate durable [long] appearance and the presence of the correct structural composition within a portfolio over time. “
Gross describes these foundations to the existence of a forecast of three to five years, which forces an investor to think long term and to avoid destructive “emotional states of fear and greed.” It clearly states that “those emotions can convince any investor or management firm to do exactly the wrong thing during irrational periods in the market.” Secondly, he argues that “those who fail to recognize the structural elements of the investment equation [asset allocation, diversification, risk measurements and yield and investment costs] will leave a lot more chips on the table that other more insightful investors scooped than they ever could have imagined. “
Some of the famous quotations related to it are:
“Finding the best person or the best organization in which to invest your money is one of the most important financial decisions you will ever make.” “Do you really like a stock? Put 10% or less of your portfolio on it. Make good idea fact … [investment] ideas should not be diversified away into meaningless oblivion.” “The genius of Bill Gross, from gaming tables to the hi-tech world trade in bonds is to his knowledge, the determination of quantities and the game of risk.” (Timothy Middleton, “King of the bonds”) “He is often characterized as Peter Lynch bond markets. But based on his experience … and the amount of assets under management … would be more appropriate to characterize Peter Lynch as Bill Gross capital markets. “(Jack malva, Lehman Brothers, 1996)