George Soros: An Investment Prodigy


Investment Style

George Soros, the investment king, was smart enough in translating broad-brush economic trends into highly leveraged, killer plays in bonds and currencies. Sores mostly preferred short-term investment, and made huge bets on the directions of financial markets. He described financial markets to be chaotic and volatile. He believed that value of securities and currencies depend on human sentiments, or the traders’ behaviour- who buy and sell these assets. These people usually act on their emotion and make trading decisions based on it, instead of following some logical considerations.

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Soros also believed that market participants influenced one another and moved in herds. Even he himself agrees that most of the time he too moved with the herd, but still he never stopped looking for an opportunity to get out in front and "make a smart bet."

In 2000, Soros fully retired, after having spent almost 20 years speculating with billions of other people's money, making them - and himself - very rich and successful through his highly yielding Quantum Fund. During this course of time, he even made some investment mistakes, but the net results of all his financial decisions made him one of the world's wealthiest investors in history.

Much later after his retirement in August 2010, Soros purchased 4 percent stake in the Bombay Stock Exchange (BSE) for about $35 million.

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