Forbes ranked him as the 56th richest guy. He is an Investor, philanthropist, social activist, writer and definitely a legend of trading world. American financier George Soros s a person whom people have discussed through the decades. Especially after that night when he earned a billion.
His excerpts are well read even today by many of the traders who start their journey of trading.
“Markets are constantly in a state of uncertainty and flux, and money is made by discountng the obvious and betting on the unexpected.” – George Soros.
Who is George Soros?
There is no template for an investment legend like Soros, but you can start with the financier’s background as a child in Budapest, Hungary, where he was born on August 12, 1930. As a pre-teenager, Soros witnessed the atrocities of the Nazi regime, and survived to flee Eastern Europe in 1947, making his way to England to study at the London School of Economics. It was in London, after reading Karl Popper’s tome, “The Open Society and Its Enemies,” where Soros first combined the concepts of science and politics. Soros never abandoned that concept, and relied on it again and again as he championed individual rights over the collective.
In his early days, he was working part-time as a waiter and a railway porter to support his studies. He got enrolled in the London School of Economics (LSE), where Soros was studying under the famous philosopher Karl Popper. While consuming the ideas of the great teacher that were close to his own views, Soros eventually realized he had been more interested in economics. After two years of experience in working at the merchant bank Singer & Friedlander and successfully finished both Bachelor and Master programs in LSE, 26 years old graduate moved to New York. And there, the exciting adventure began.
The Jewish Guy In USA!
Soros turned an original seed funding of $12 million into $20 billion by the first decade of the 21st century. If you had invested $1,000 in Soros’ Quantum Fund in 1969, you would have earned $4 million by 2000 – at an annual growth rate of 30%.
Apart from his trading activity, Soros got involved in philanthropy. He was not that rich and greedy man that one is likely to become being so successful – a good portion of his fortune has been stably invested in helping other people. Thus, at the age of 54 he established the Open Society Foundations to fund global initiatives related to developing education, public health, business, and supporting freedom of speech, equality, and justice all over the world.
With the OSF, Soros sought to “strengthen the rule of law; respect for human rights, minorities, and a diversity of opinions; democratically elected governments; and a civil society that helps keep government power in check.” George Soros has donated $8.5 billion to charity as of March 31, 2013 through his institution.
The Best And The Worst Investment!
In 1992, George Soros wagered $10 billion against the currency policy of the Bank of England, and its underlying currency, the pound. Essentially, Soros’ bet the pound would flounder in global currency markets. On September 16, 1992 – a day known as “Black Wednesday” among currency traders- the British pound cratered against the German mark and the U.S. dollar, earning Soros $1.2 billion in profits over the next few weeks – a bet that went down in history as the day George Soros broke the Bank of England.
On March 14, 2008, George Soros purchased a huge chunk of Bear Stearns‘ stock, valued at $54 per share. Only days later, the fabled Wall Street investment firm was sold to J.P. Morgan at $2 per share. Soros was correct in his assessment that Bear Stearns was on the trading block. But he was dead wrong on the takeover value of the company, an expensive lesson he details in his book, “The New Paradigm for Financial Markets.”
George Soros Worth Today!
Trying out new strategies, speculating on many market moves and 2008 crisis, Soros has earned the net worth of $8.3 billion as of February 2020. For around forty years period 1969 to 2009, he compounded his investments at the rate of 26.3%, which is bigger than Warren Buffett’s return over the same period (21.4%).
Now, he remains the chairman of Soros Fund Management LLC that has become a privately owned family office after returning outside investors’ money. Moreover, Soros keeps donating money to the Open Society Foundations that launch programs in more than 100 countries, having 37 regional offices.