Introducing Bill Gross
Let me introduce you to Bill Gross, a renowned bond investor who co-founded the Pacific Investment Management Company, known as PIMCO, and earned the title of the 'Bond King.'
He's the author of several books, including 'Bill Gross on Investing,' 'Everything You've Heard About Investing Is Wrong!' and 'I'm Still Standing.'
Key Takeaways
You should know that Bill Gross co-founded PIMCO and is famously called the 'Bond King.' He created the first investable market for fixed-income securities, making it accessible to everyone.
Beyond investing, Gross is a successful stamp collector and the benefactor of the William H. Gross Stamp Gallery at the Smithsonian National Postal Museum.
Early Life and Education
Bill Gross was born on April 13, 1944, in Middletown, Ohio. He earned a bachelor's degree in psychology from Duke University in 1966 and then served in the United States Navy during the Vietnam War.
As a risk-taker, Gross spent his early career gambling and counting cards at poker tables before joining Pacific Mutual Life in Los Angeles as an investment analyst. In 1971, he founded PIMCO in Newport Beach, California, with friends Jim Muzzy and Bill Podlich.
PIMCO
Known as the 'Bond King,' Bill Gross created the first investable market for fixed-income securities that all investors could access. PIMCO serves institutional investors, high-net-worth individuals, and individual investors through its account services and mutual funds.
Gross is credited with aggressive bond investing, turning the quiet bond market into a high-risk, high-reward game. Before PIMCO, bonds were rarely traded and handled only through paper documents, with major buyers being insurers and pension funds.
PIMCO changed that by initiating active trading in and out of positions, expanding into junk bonds and emerging markets. As of September 2023, PIMCO manages $1.74 trillion in assets and is the world's largest active fixed-income fund management firm.
In 2014, Gross resigned from PIMCO amid internal management struggles. He later sued and settled with the company following his ousting.
Notable Accomplishments
After leaving PIMCO, Gross joined Janus Capital Group until retiring in 2019. His reputation was such that on the day his move to Janus was announced, the company's share price climbed 43%, marking a historical one-day gain.
Gross is also a renowned philatelist and benefactor of the 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.
He auctioned a collection of British stamps in 2007, raising about $9 million, all donated to Doctors Without Borders. In 2022, Gross released his memoir 'I'm Still Standing,' detailing his American success story, with all proceeds donated to charity through the William, Jeff, and Jennifer Gross Family Foundation.
Why Did Bill Gross Resign From PIMCO?
Gross clashed with PIMCO's management, including CEO Mohamed El-Erian, and was known for his outbursts and boasts. These tensions allegedly forced his resignation in September 2014, leading him to join Janus.
How Did Gambling in Las Vegas Influence Bill Gross?
As an avid blackjack player in Las Vegas, Gross gained a 'sense of risk' from it. It taught him to avoid too many high-stakes bets, as he noted that even with odds in your favor, excessive leverage and debt can cause everything to collapse like a house of cards.
What Is the William H. Gross Stamp Gallery?
Established in 2013 as part of the Smithsonian National Postal Museum in Washington D.C., and named after its primary benefactor, the William H. Gross Stamp Gallery is the world’s largest gallery dedicated to philately. It features hundreds of pullout frames with more than 20,000 objects, allowing you to view noteworthy stamps never before on public display.
The Bottom Line
Bill Gross is a renowned bond investor who led PIMCO to become the largest active fixed-income fund management firm in the world. He is also a successful author and stamp collector.
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