venerdì 5 gennaio 2018

The George Soros Story

The George Soros story Epimetheus on Patreon A young Soros succeeded to survive to Soviet sige of nazi occupied Budapest and managed to immigrate to London England afterwards. After working as a clerk soros was promoted to working in the firm’s arbitrage department, is the practice of taking advantage of a price difference between different markets: striking a combination deals that capitalize upon the imbalance, the profit being the difference between the market prices. it is the possibility of a risk-free profit after transaction costs. For instance, an arbitrage is present when there is the opportunity to instantaneously buy low in one market and sell high In 1956 Soros moved to new York City, Rising from a trader to a hedge fund manager and vice president of Arnhold and S. Bleichroeder investment bank During this time he also spent years--developing his theory of economic reflex-iv-ity. reflex-iv-ity crudely stated is the concept that market values are often driven by the fallible ideas of market participants, and not only by the economic fundamentals of the situation Feedback loops exist where fallible ideas influence events, events influence markets, and these markets and events influence new ideas…His ideas of how markets worked was in direct contrast to the in vogue market equilibrium theories of the day. Soros created an experimental portfolio wher he would implement his theories…starting at a 4m initial capital investment including 250,000 of his own money the fund would triple its value--- to 12m in four years. He would then leave Arnhold and S. Bleichroeder and create soros fund management. Most of its initial investors where the same as the his experimental fund at a and B In a decade the fund would increase from 15m to 400m In 1992 Soros would make the investment that would make him famous. Stanley Druckenmiller, who was one of Soro’s lead portfolio managers for many years, first noticed the weakness in the British pound, Soros then pushed his fund into taking an unprecedented position against the pound, of 10 billion dollars. When the pound crashed in value Soros made 1 billion dollars in a day…the TREASURY OF THE UINTED KINGDOM LOST 3.4 BILLION THAT DAY KNOW AS BLACK WEDNESDAY… afterwards Soros would dubbed “the man who broke the bank of England” After this event Soros gained almost mythic status in financial markets. When soros spoke markets moved. 5 years later the prime minister of Malaysia accused Soros of causing the Asian financial crisis of 1997.Soros has stated here merely took advantage of a situation that would have fallen apart regardless of his actions..if he hadn’t done it someone else would have. From Soros’s involvement in black lives matter to the overthrow of vitor yanakovich and exploitation of Ukraine in 2014—Soros has been involvement in us and global politics has gradually replaced his focus on finance over the past few of decades…now at 87 years old he has moved an unprecedented 18 billion dollars dwarfing the Bill and Melinda gates foundation making the open society foundation the largest private charity

fonte Epimetheus

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