How to Invest Like George Soros: Learn from the Best with New Gen

George Soros, born in Budapest in 1930, is chairman of Soros Fund Management LLC. and is known as one of the most successful investors in history. As of 2021, his fortune amounted to 8.6 billion dollars.

In addition, Forbes magazine has listed him as the “most generous donor”, having donated more than $32 billion to the Open Society Foundations, representing more than 60% of his original fortune.

The philanthropist uses the contrarian investing strategy. This is a model of investment in securities in which the market price is estimated to be wrong and, therefore, the price does not correspond to the intrinsic value. As happened with the price of the British pound.

When Soros chooses an investment, he starts by investing cautiously and until he confirms that his hypothesis is true, he invests a larger amount of money. If he realizes he has made a mistake, the amount he would lose would be small. This is why he states that, keeping in mind the range of profits or losses is an essential step in the investment process.

The tycoon takes trends into account, if the upward or downward trend is in an early phase, he invests heavily. If it is in an advanced phase, he benefits from its changes.

Soros usually invests in large companies, since these, in times of crisis, also fall, although less than small ones.

A bit of history

In 1969, George Soros created a hedge fund called Double Eagle made up of 4 million dollars of investors’ money and 250,000 dollars of his own capital.

By 1970, he founded Soros Fund Management and became its chairman. In 1973, he resigned from the management of the Double Eagle Fund. He subsequently established the Soros Fund and gave Double Eagle investors the option to relocate.

Later, the fund was renamed the Quantum Fund. At that time, the value of the fund had reached $12 million, of which only a small percentage was Soros’ own money.

By 1981, the fund had grown to $400 million, and then a 22% loss that year reduced it to $200 million. By 2013, however, Quantum Fund earned $5.5 billion, which would make it the most successful hedge fund in history. Since its inception in 1973, to date, the fund has generated around $40 billion.

The fund announced in 2015 that it would inject $300 million to help finance the expansion of Fen Hotels, an Argentine hotel company. The funds would develop 5,000 rooms in several Latin American countries.