Time Value of Money
Kinds of Interest Rates
Future Value of an Uneven Cash flow
Probability Distribution
Standard Deviation
Security Market Line
Bond Valuation
Stock Valuation
Cost of Capital
The Balance Sheet
Capital Budgeting
Hall of Fame
Credit Report
Financial Terms
Financial Charts
Fuel Mileage
Energy Efficiency

Bill Gross

Bill Gross was born in 1944 in Middletown, Ohio. He studied at Duke University and graduated in 1966 with a psychology degree. He spent a summer as a professional blackjack player in Las Vegas and went on to serve in the navy off the Vietnam coast. Once his military service was over, Gross returned to studying and in 1971 he was awarded an MBA from the University of California. He got a job as an investment analyst working for Pacific Mutual Life and stayed in this position from 1971 until 1976. During this time, Gross obtained his Certified Financial Analyst (CFA) award. In 1976 he was promoted to Assistant Vice President in the area of fixed income securities at Pacific Mutual. He stayed in this role for two years before leaving in order to found Pacific Investment Management Company (PIMCO). PIMCO is the biggest fixed-income management company in the world and Gross has held the position of chief investment officer and managing director since the firm was created in 1982.

Due to the global success of PIMCO, Bill Gross is often referred to as the “king of bonds”. The PIMCO bond fund company manages over $600 billion worth of fixed-income assets. Gross was inducted into the hall of fame according to the Fixed-Income Analyst Society Inc. (FIASI) in 1996 in recognition of the contributions that he has made to the field of portfolio and bond analysis.

Gross has talked about the importance of choosing a good investment manager and is quoted as saying, "Finding the best person or the best organization to invest your money is one of the most important financial decisions you'll ever make." He also advocates the principle of investing large portions in a single stock by saying, "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."

Gross has earned a reputation for his ability to respond quickly and without hesitation when there is a change in the market. Nicole Bullock from commented in 2005, "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." In his book titled “The Bond King”, Timothy Madden says "The genius of Bill Gross, from the gaming tables to the high-tech world of bond trading, is his knowing, quantifying and playing risk." Jack Malvey of Lehman Brothers has also made the following observation about Gross’ investment style: "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."

Bill Gross’ publications include:

Bill Gross on Investing

Everything You've Heard About Investing Is Wrong! : How to Profit in the Coming Post-Bull Markets

Publications about Bill Gross include:

The Bond King: Investment Secrets from PIMCO's Bill Gross

About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".

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Mark McCracken , All Rights Reserved