George Soros is one of the most famous financiers of the past half-century.
Twenty years after graduating from the London School of Economics, he opened Soros Fund, later renamed Quantum Fund, where he tested his free market principles in capital markets. There, he turned $12 million in seed funding into $20 billion by the beginning of the 21st century.
Soros also found philanthropic organizations and donated billions to charity. He tested his investment principles in global financial markets and honed a strategy that combined scientific methods with his passion for social change.
His strategy follows five key guidelines:
- Value assets by market feedback.
- Apply the scientific method, which creates a strategy that tracks what will transpire in financial markets based on current data.
- Follow physical cues. A headache will cause Soros to abandon an investment.
- Blend political and investment intuition. For example, Soros earned a billion dollars when he bet heavily against the U.K.’s decision to hike interest rates in 1992.
- Consolidate and reflect after gathering opinions from advisors before making any investment decision.
Investing like Soros requires guts and confidence. Investors should learn from his patience, discipline and research methods, and remember that they can’t be too bold with any market move.
For more on Soros, see By George: Investing the Soros Way.
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