”The worse a situation becomes, the less it takes to turn it around, and the bigger the upside.”
Often the best time to buy is when the most stay away. Usually, it happens after a major market correction, the most recently in 2008. At times like this, great companies with staying power sell below their intrinsic values.
"I called gold the ultimate bubble, which means it may go higher. But it’s certainly not safe and it’s not going to last forever."
For many, it is a controversial statement. But, remember that Soros is an investing billionaire. Gold is considered to be a hedge against inflation. However, at times buying gold may not be the best bet. Many bought gold in late 1970s and early 1980s, only to see the precious metal’s price collapse. Over two decades had to pass before they could recover their investment on an inflation-adjusted basis.
"The hardest thing to judge is what level of risk is safe."
Investing is risky. The question is: How much are you willing to risk? Higher risk means bigger profit as well as bigger loss potential. Few years ago, many investors lost money on mortgage-backed securities as risks weren’t fully shown and understood.
"The generally accepted view is that markets are always right -- that is, market prices tend to discount future developments accurately even when it is unclear what those developments are. I start with the opposite view. I believe the market prices are always wrong in the sense that they present a biased view of the future."
That’s a contrarian view and a denial of efficient markets hypothesis. Those who can find where markets have temporarily mispriced values of particular investments can make from decent to great returns.
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Soros is best known as “The Man Who Broke the Bank of England”
Find out here how this top trader made millions in the market. All verified!
George Soros migrated from Hungary to England and then to the United States where he became a very famous investor. Back in 1992, George Soros bet $10 billion on the collapse of a British Pound. His bet paid off handsomely in the form of a billion-dollar profit. That’s the trade only the greatest can make.
This well-known investor runs Soros Fund Management, known for its Quantum family of funds. In this article, we discuss his investing philosophy. It should be of interest to both investors and traders as Soros does well with investing and also makes amazing trades. His personal wealth is estimated to be between $20-25 billion.
"I'm only rich because I know when I'm wrong.”
This billionaire investor has no problem with admitting mistakes. It is important for investors to know when they’re wrong, admit it, and take action such as getting rid of the losers- unless there is a good reason to hold these investments. Unfortunately, too many like to have a paper capital loss than to close a transaction in order to free money for a better investment.
”The financial markets generally are unpredictable.”
Many novice investors think that the only way to make money in the financial markets is to predict where they’ll go. Actually, it’s the game of making high probability bets and looking to take out more from the markets than it is given away. Some highly successful investors and traders lose money on more than 50% of trades, yet the profits they take from winners are bigger than their losses (usually due to quickly eliminating losing bets with stop orders, while letting winners run by making the stops higher as the prices go higher, thus lacking into higher profits without closing a position). It’s not about being right, it’s about making money.