The son of a wealthy Egyptian cotton grower, Sarofim earned his degrees from the University of California and Harvard. At the age of 30 he founded Fayez Sarofim & Co investment bank in 1958, with US$1m capital from his father.

Today the company manages investment portfolios for a wide range of clients including pension plans, foundations, endowments and individuals worth a combined total of US$34bn.

Sarofim did enough marketing to land some major accounts early on and won management contracts for the pension funds at Mobil, General Electric, and Ford. His major coup was landing Rice University’s endowment. He also manages the Houston Fine Arts Museum’s US$300m endowment.

His fortune was also amassed following long-term bets on companies such as Procter & Gamble and Philip Morris.

With his strict buying and selling policy, when he does trade it is an event. While most investors sell their winnings and hold their loses, Sarofim believes in selling the losers and doubling up on the winners.

He believes that the top three companies in an industry will make the most money; therefore provide the best return. Sarofim bets on stocks of companies with long-term track records and solid visions for future growth. He also invests alongside his clients. He only turns over around 5% of his portfolio each year, for one reason – his aversion to taxes.

“I don’t want to become a patriot,” he once told
Forbes

magazine.

There have, however, been a few rough times, namely when he lost an estimated US$475m on that bleak Friday in 1992 when US tobacco giant Philip Morris cut its cigarette prices.