Business Investing

TOP 5 George Soros Life and Investing Lessons

On September 16, 1992, the day known as the Black Wednesday, the UK Treasury received losses of 3.4 million pounds sterling. On the same day, George Soros earned a billion on the short trades.

How did he do it? What is his secret? In this article, we are going to plunge into the world of George Soros and look at the financial markets with his eyes.

Born in Budapest, he emigrated to the UK when he was 17. There he started his career as a clerk at a merchant bank and soon was promoted to the arbitrage trader. After a while, he got a more favourable job offer and moved to the US. Here we can see the first life lesson from George Soros.

Do not be afraid to leave the comfort zone

So, he moved to the US and became a specialist in European stocks, later — in European securities. At that time, he had only one goal — to save $500.000 and move back to England in order to become a famous philosopher. He never did it.

Here is the second life lesson from George Sorosdo not be afraid to change your life vectors and adjust to the changing world.

But he did not leave the philosophy forever, he transferred it to his life — into investing. He developed a theory he referred to as reflexivity. The essence of this concept was that self-consciousness is part of any environment. Proceeding from this theory, the act of creating an appraisal in any market will reflect on the actions of market participants, creating a virtuous or vicious circle of the market. Similarly, any prediction can affect the future behaviour of the market.

Following this theory, George Soros began to excel, climb the career ladder and, as a result, manage his own hedge fund.

Use any skill available to you to achieve your goals

The George Soros fund was developing very rapidly. The gain was more than 3000%! Everything was wonderful until one day a 22% collapse occurred and half of the investors left the fund. What did Soros do in that situation? He transferred the management of the fund to another person and went into detailed study and analysis of the world market. After a while, he triumphantly returned to the big game and brought a huge profit to the fund.

Do not be afraid of losing. Stop, analyze everything and move forward with a new awareness

So, we came to the moment of the Black Wednesday. We already know that George tore up such a large sum by applying his philosophical knowledge and profound analysis of the market. But, of course, he did not expect a flurry of accusations that showered on him. People made him guilty in the pound collapse, called a speculator and a rascal. He decided to ignore these accusations and confidently moved on. Moreover, a little later Soros returned the money to all investors of his fund and began to raise solely his capital.

Do not pay attention to the reproaches of other people. Do not depend on anyone

Today we know George Soros as the 29th number in the list of Forbes billionaires and as one of the most successful investors ever. Is his approach unique? No, he just followed the life tips described above. They are elementary, therefore, they are effective. Maybe it’s time to try them on yourself?