Worlds Richest Spotlight – George Soros
Posted on | November 3, 2008 | 2 Comments
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George Soros is a true architect of wealth as he is ranked by Forbes as the 99th richest person in the world. In 1969, Soros, along with Jim Rogers, founded the Quantum Fund. It is widely known as one of the nation’s first hedge funds. While the stock market struggled through the 1970’s and early 1980’s, the Quantum Fund was returning unreal gains as it was heavily invested in commodities. The fund returned 42.6% per year in the first ten years of its existence. Rogers retired from the fund in 1980. The fund closed itself to new investors in 2000. The fund’s bearish bets on the U.S. stock market in 2007 netted a 32% gain.
Soros’ recently published a book, The New Paradigm for Financial Markets, in which he describes a “superbubble” that has built up over the last 25 years and is ready to collapse. It is quite possible we have already started to see the beginning of this. Soros has predicted a stock market breakdown two other times in 1987 and 1998. Subsequently, each time the market did fall for the short term, but regained its value and then some. Soros states “I have a record of crying wolf…. I did it first in The Alchemy of Finance (in 1987), then in The Crisis of Global Capitalism (in 1998) and now in this book. So it’s three books predicting disaster. (After) the boy cried wolf three times . . . the wolf really came.”
While Soros and Rogers have not agreed on all financial issues since their split in 1980, they both agree that the current financial market is a total mess. It would be very interesting to hear a conversation between these two market mavens as they have made millions on making predictions; although some a little too early.
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November 3rd, 2008 @ 1:59 pm
[...] Wealth Architect Spotlight – George Soros [...]
November 3rd, 2008 @ 9:42 pm
[...] Soros clipped by: jwojdyloclipper’s remarks: Great article on George Soros Clip Source: http://www.subprimeblogger.com George Soros is a true architect of wealth as he is ranked by Forbes as the 99th richest person in [...]