Carl Icahn is a very successful American activist investor. His investment thinking was brilliant and that led him to achieve enormous success in his life. Here are some of the investing lessons that other investors could learn from him.
1. The approach of Carl Icahn was very different and unique. He achieved success in his life by building a great reputation and by clever publicity. Instead of investing in several mega companies, he chose some small companies with the promise that he would resurrect it. This played a major role in his success.
2. Carl Icahn believes in paying complete attention to every project that he undertakes. Earlier, he used to take not more than 6 projects in a year so that he could give every project complete attention. However in the last five years, he took about 8 activist projects in a year. The projects that he took were mostly in the less popular companies. The high profile companies were Apple and Dell.
3. Carl Icahn believes in working alone. He did not have a partner while working on most of his projects. In only 6 projects, he formed a partnership with another investor. He believed that his work principles do not match with others and he is most productive when he is working alone. This fuelled his success.
4. Carl Icahn specialized in plenty of subjects. Unlike other investors, he did not specialize in a few segments of the industry. Instead, he had vast knowledge about biotechnology, information technology, retail, media and services. This helped him to work with several companies including manufacturers, media, information technology etc. This is one of the most important factors that made him so successful.
5. Carl Icahn had some brilliant strategies when he took a project. His strategies include BoD restructuring, selling business and returning cash. He believed in the power of publicity. He widely publicized each and every effort of his by sending newsletter to the management and sending letters to several shareholders. All these strategies helped him to achieve success.
6. Carl Icahn believed in the power of social media and utilized it effectively to gain success. He has an outstanding blog and is quite regular in Twitter. He attends conferences, news shows and talks confidently with the reporters.
Carl Icahn was brilliant in handling pressure. Since he publicized himself and was always active in social media, there was always an underlying stress. However, his approach, energy, confidence and creativity made him such a successful man. Anyone interested in investing can follow the footprints of Carl Icahn to achieve success in life.