1. Don't talk about morality in front of capital.
Soros, an investor who bases his happiness on the sufferings of others, is a unique geek and genius in the financial history, and a speculator who can keenly capture any trivial changes. Everything he does is based on legal and compliant finance, so he has a considerable number of fans around the world.
Soros has two unprecedented achievements, perhaps later, attacking the pound and "bloodbath Southeast Asia".
For other top investment experts in the world, having one of them is enough to stand out from the crowd, so it is not too much for us to call Soros the greatest speculator in the world.
Because he caused the Asian financial crisis of 1997, Southeast Asian countries hated him. Although Soros has invested billions of dollars in education, medical care and economic development in more than 60 countries, it seems that this has not fundamentally changed the hostility of some public opinion towards him.
In fact, the financial market is the battlefield, just as Soros himself said, morality is not the standard of evaluation here, and success or failure in the capital market cannot become an attack on personality. His success should be attributed to his keen judgment and adventurous spirit, not the so-called market disruption.
Many investors believe that the financial market should be orderly and the stock price should have a fixed logic. However, Soros holds the opposite view. He thinks the financial market is in turmoil. If we regard its every move as part of a mathematical formula, it will never work.
Soros is convinced that mathematics cannot control finance and stock market, but psychological factors can control the market. More precisely, only by mastering human instinct can we control the situation, that is, only when people gather around a stock or financial instrument in some way can successful investors come to the front desk. This is Soros's "nut shell" theory. Soros, who entered Wall Street at the age of 20, had a smooth sailing. In 1980s, the fund he partnered with Rogers defeated Buffett and Lynch, and Soros became the most profitable fund manager. Someone calculated that if 1969 invested $65,438+million in the fund founded by Soros, he would have 1994.
However, the stock market is not always the winner, Warren Buffett also makes mistakes, and Soros is no exception.
The stock market crash of 1987 is Soros's Waterloo. At that time, he thought that the Japanese stock market was about to collapse and switched to the American stock market. In September, he transferred billions of dollars from Tokyo to Wall Street, but a month later, the stock index plummeted by 508 points. In the following weeks, the stock market continued to fall, while the Japanese stock market was relatively firm. Soros decided to sell his long-held stock share, and other traders took the opportunity to smash the relevant stocks after capturing this information, which reduced the cash discount of futures by 20%. In this Wall Street crash, Soros lost nearly $800 million, and the net assets of Quantum Fund fell by 26.2%, far greater than the drop of 17% in the US stock market, making him the biggest loser of this disaster. In the face of the biggest defeat in history, Soros survived, which triggered the shocking scourge of 1992 and the Bank of England. Market insight determines everything, and wrong judgment will lead to self-destruction. Soros's genius lies in foreseeing the future development trend faster and more accurately than others. At least in the previous three years, Soros has begun to "warm up" and prepare to start in the UK. The European exchange rate mechanism, which is preparing for a unified currency, makes the pound seriously overvalued. Under the pressure of pegging to currencies such as the mark, Britain neither dares to take the initiative to devalue the pound to stimulate economic development, nor dares to sacrifice economic development for currency stability. Soros believes that it is impossible to maintain the harmony of the currency exchange rate mechanism. The only way for European countries to leave speculators no choice is for all countries to maintain the same exchange rate. However, due to the unbalanced economic development of various countries, politicians only consider safeguarding their own interests, which inevitably leads to disharmony, as reflected by the weak pound today.