Next video:
Loading the player...

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:

  1. Value assets by market feedback.
  2. Apply the scientific method, which creates a strategy that tracks what will transpire in financial markets based on current data.
  3. Follow physical cues. A headache will cause Soros to abandon an investment.
  4. 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.
  5. 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.

  1. No results found.
Related Articles
  1. Investing

    By George: Investing The Soros Way

    Soros turned an original seed funding of $12 million into $20 billion by the first decade of the 21st century. Can regular folks invest like George Soros?
  2. Investing

    Where Does George Soros Keep His Money?

    Learn about where George Soros keeps his massive fortune. Discover how Soros has supported various candidates and political causes during his career.
  3. Insights

    Soros's 13F Shows Continued Bearishness on Markets

    George Soros has apparently decided that 86 is indeed too young to retire.
  4. Investing

    George Soros: 3 Best Investments Ever

    Learn about some of the most successful trades famed investor George Soros has made during his career, including a billion dollar profit against the pound.
  5. Investing

    Soros Upends Portfolio, Makes Big Bets on Info Tech

    Soros Fund Management upended its portfolio in Q1, with info tech getting the bulk of the attention.
  6. Investing

    Soros Is Trading Again Amidst Global Concerns

    Does Soros sense new opportunities on the horizon?
  7. Financial Advisor

    This Is What George Soros' Portfolio Looks Like (SPY, YPF)

    Learn about what George Soros is holding in his portfolio, including his large options position in the S&P 500 and what popular Internet stock he liquidated.
Hot Definitions
  1. Fixed-Income Security

    An investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity. ...
  2. Free Cash Flow - FCF

    A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents ...
  3. Leverage Ratio

    Any ratio used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to ...
  4. Two And Twenty

    A type of compensation structure that hedge fund managers typically employ in which part of compensation is performance based. ...
  5. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  6. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
Trading Center