?The investment tycoon Soros has the experience of losing money three times. From the group of investment masters, we can find a representative figure of changeable hands, and it is none other than Soros. In 1987, Soros estimated that the Japanese stock market was about to collapse, so he used Quantum Fund to short stocks in Tokyo and buy S&P futures contracts in New York, preparing to make a fortune. But on "Black Monday", October 19, 1987, his dream came to nothing. The Dow Jones Industrial Average fell a record 22.6%, which is still the largest single-day decline in history. At the same time, the Japanese government supported the Tokyo market. Soros suffered a two-front rout. This is Soros's first loss.
?What follows is Soros’s second huge loss in business investment. In 1962, Soros made a mistake that nearly bankrupted him. He discovered an arbitrage opportunity in Studebaker stock. The company is issuing ?A? shares, which will become common stock after one year. They trade at much lower prices than common stocks. When the deal went against Soros, he didn't back out in time and was nearly bankrupt.
?The same was true for the third time later. In 1987 Soros encountered his "Waterloo". So, in September 1987, Soros transferred billions of dollars of investment from Tokyo to Wall Street. Over the next week, New York stocks slid. The Japanese stock market has been relatively strong. Soros decided to sell off several large long-term stock holdings. After other traders captured the relevant information, they took the opportunity to violently sell down the sold stocks, causing the cash discount of futures to drop by 20%. The discount for 5,000 contracts amounts to US$250 million. Soros lost more than $200 million in one day. Soros lost approximately $650 million to $800 million in the Wall Street crash. ?
The above three experiences of Soros’ failures are just as Soros said: ?World economic history is a series based on illusions and lies. The way to gain wealth is to recognize the illusion, get involved, and then get out of the game before the illusion becomes public knowledge.
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