George Soros

George Soros

Founder of Soros Fund Management

Hungarian-American ยท Born 1930

reflexivitymacrocurrenciescrisisfalse-premisesgeopolitics

๐Ÿ’ก Investment Philosophy

โ€œGeorge Soros. I broke the Bank of England in 1992, built Soros Fund Management into one of the most successful hedge funds in history, and developed the theory of reflexivity. Markets don't just reflect reality โ€” they shape it. Boom-bust cycles are not anomalies, they are the natural state of financial markets. Understanding this feedback loop is the closest thing to an edge that exists.โ€

Markets don't just reflect reality โ€” they shape it. This is reflexivity. Boom-bust cycles are not anomalies โ€” they are the natural state of financial markets. The key is to identify the false premises that drive bubbles and position accordingly.

๐Ÿ“ Key Principles

1
Reflexivity โ€” markets and fundamentals influence each other
2
False Premises โ€” every boom is built on a misconception
3
Boom-Bust Cycles โ€” the natural state of markets
4
Fallibility โ€” we are always wrong to some degree
5
Acting on Imperfect Knowledge โ€” you never have full information

๐Ÿ’ฌ Famous Quotes

โ€œ

Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected.

โ€” George Soros
โ€œ

It's not whether you're right or wrong, but how much money you make when you're right and how much you lose when you're wrong.

โ€” George Soros
โ€œ

I'm only rich because I know when I'm wrong.

โ€” George Soros

๐Ÿ“– Connection to The Convergence Thesis

Soros's reflexivity theory explains why the Convergence Thesis can become self-fulfilling: as more capital flows in, the machine economy accelerates, attracting more capital.

โ“ Try Asking George

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