On an ordinary day in 1992, the British government raised interest rates by twice to 15% to support the pound with all its strength, but after a day of crazy trading, the pound plummeted again.
It was an extremely difficult and turbulent day, and George Soros made $1 billion almost overnight.
This is the infamous Black Wednesday in 1992. Bank of England lost a total of $3.5 billion, losing to George Soros.
What does it feel like to have a lot of money?
Soros said: "It makes you feel free and gives you a certain degree of power."
Today we will learn who Soros is and how big his organization is.
George Soros' childhood was not normal at all. His father Tvadal Soros was a prisoner of war during World War and fled in Siberia for three years.
In 1930, his second son George Soros was born and he was running around in Siberia. Later he became a successful lawyer in Budapest .
He spent a lot of time teaching his son the art of survival. Because he had a terrible experience, which taught him a lesson, he in turn taught his son a lesson. The father's pragmatism and survival instinct will become the cornerstone of George Soros' future success.
But the peace and prosperity that his family enjoyed was short-lived, when Hitler wiped out millions of Jews in Western Europe. His next target is Hungary—the country with the largest number of Jews in Eastern Europe.
Nazi authorities began sending deportation notices to local Jews. But such an expulsion notice is actually a disguised death penalty notice. George Soros’ community has experienced a serious war, and the grieving father is determined to survive again through unconventional means.
At that time, the normal rules no longer apply, so his father sold his property and began to use fake identities and bribe the authorities to hide his family in different places across the country.
When the Nazis retreated to Hungary, all Jewish children from the Soros era suffered severe mental trauma.
After the Nazis were defeated, happiness was only temporary, because soon the worse would be replaced. Then the occupation of the Russians brought eternal trauma to Soros' family.
Sadness is different, he is deeply troubled and begins to question the nature of reality.
He has a lot of Post-traumatic stress disorder , including emotional numbness, fear and confusion about intimacy. Young George Soros tried desperately to get rid of this ruthless and chaotic life.
17th birthday he left home and embarked on a new journey of seeking development in the West. By the time he arrived in London, he was already penniless.
In order to make a living, he worked as a waiter and saved money by eating leftovers from customers. After all the hardships, there was a glimmer of light at the end of the tunnel - he was admitted to London School of Economics .
London School of Economics may be the best school to study economics, but what really makes this school special is that it has cultivated many world leaders.
At first, Soros was like a lonely man thrown into an unknown world. The only thing he could do was spend all his time studying.
He studied under the famous philosopher Carl Popper. Soros is deeply influenced by popper . His sorrow was aimless before, but now he finds his life mission to be a philosopher, just like his mentor Carl Popper.
But soon he found that he could not afford the tuition fees of graduate school. Making a living became the top priority for him.
When he graduated, he realized that he would make a lot of money in the financial industry. He is very proactive. I wrote a letter to the general manager of every bank in London, hoping to find a job. Soon a commercial bank provided him with an internship.
He happily accepted, where he was a trader specializing in gold stock arbitrage and was trying to profit from price differences in different markets, but he did a terrible job in this regard. He resigned only two years later.
On an ordinary day in 1992, the British government raised interest rates by twice to 15% to support the pound with all its strength, but after a day of crazy trading, the pound plummeted again.
It was an extremely difficult and turbulent day, and George Soros made $1 billion almost overnight.
This is the infamous Black Wednesday in 1992. Bank of England lost a total of $3.5 billion, losing to George Soros.
What does it feel like to have a lot of money?
Soros said: "It makes you feel free and gives you a certain degree of power."
Today we will learn who Soros is and how big his organization is.
George Soros' childhood was not normal at all. His father Tvadal Soros was a prisoner of war during World War and fled in Siberia for three years.
In 1930, his second son George Soros was born and he was running around in Siberia. Later he became a successful lawyer in Budapest .
He spent a lot of time teaching his son the art of survival. Because he had a terrible experience, which taught him a lesson, he in turn taught his son a lesson. The father's pragmatism and survival instinct will become the cornerstone of George Soros' future success.
But the peace and prosperity that his family enjoyed was short-lived, when Hitler wiped out millions of Jews in Western Europe. His next target is Hungary—the country with the largest number of Jews in Eastern Europe.
Nazi authorities began sending deportation notices to local Jews. But such an expulsion notice is actually a disguised death penalty notice. George Soros’ community has experienced a serious war, and the grieving father is determined to survive again through unconventional means.
At that time, the normal rules no longer apply, so his father sold his property and began to use fake identities and bribe the authorities to hide his family in different places across the country.
When the Nazis retreated to Hungary, all Jewish children from the Soros era suffered severe mental trauma.
After the Nazis were defeated, happiness was only temporary, because soon the worse would be replaced. Then the occupation of the Russians brought eternal trauma to Soros' family.
Sadness is different, he is deeply troubled and begins to question the nature of reality.
He has a lot of Post-traumatic stress disorder , including emotional numbness, fear and confusion about intimacy. Young George Soros tried desperately to get rid of this ruthless and chaotic life.
17th birthday he left home and embarked on a new journey of seeking development in the West. By the time he arrived in London, he was already penniless.
In order to make a living, he worked as a waiter and saved money by eating leftovers from customers. After all the hardships, there was a glimmer of light at the end of the tunnel - he was admitted to London School of Economics .
London School of Economics may be the best school to study economics, but what really makes this school special is that it has cultivated many world leaders.
At first, Soros was like a lonely man thrown into an unknown world. The only thing he could do was spend all his time studying.
He studied under the famous philosopher Carl Popper. Soros is deeply influenced by popper . His sorrow was aimless before, but now he finds his life mission to be a philosopher, just like his mentor Carl Popper.
But soon he found that he could not afford the tuition fees of graduate school. Making a living became the top priority for him.
When he graduated, he realized that he would make a lot of money in the financial industry. He is very proactive. I wrote a letter to the general manager of every bank in London, hoping to find a job. Soon a commercial bank provided him with an internship.
He happily accepted, where he was a trader specializing in gold stock arbitrage and was trying to profit from price differences in different markets, but he did a terrible job in this regard. He resigned only two years later.
After World War II , the United States rose to become the most powerful country in the world. The U.S. economy grew by 37% in the 1950s. Inflation is very low and the unemployment rate is also very low.
People around the world are eager to come here to pursue their American dream. George Soros was one of them. In 1956, he moved to New York and worked as an arbitrage trader in several financial companies.
Soros later recalled: "At that time, I just wanted to work hard in the United States for a few years, earn $100,000, and then I could live."
He tried hard to find his own advantages in his work. At that time, few investors believed that world finance was an interrelated system, but Soros was one of the first people to have this systematic view. Although he received economics education, he found that classical economics thoughts were useless in the real world.
Soros said: "My explanation for the financial market is directly contradicting the effective market hypothesis , which has always been the mainstream theory of the financial market. The real financial world is like a chaotic system, and almost any human cause is inevitably driven by two forces - reality and participants' expectations. They are interdependent, but because human perceived expectations are biased and flawed, their bias towards reality will make his behavior irrational, so there will always be gaps. Such gaps represent trading opportunities."
Soros uses his unique insights to lead Wall Street There are many other traders, and by 1969 he saved $250,000 for himself. But in order to verify his theory, he needs more money to create his own fund .
For those living in the 1960s, $250,000 is not a small amount, but it is still not enough to start his fund.
Fortunately, as a trader over the years, Charles has developed strong relationships with many wealthy European investors. They deposited six million dollars into his fund.
At that time, he had a very simple investment strategy , looking for the cyclical trends of prosperity and bust, buying when rising, and shorting when falling. He perfectly grasped every opportunity.
1960, Real Estate Investment Trust is a new popular investment tool. Soros realized that this new asset class could go through a cycle of boom and bust.
He predicts it will crash within three years, but it will continue to rise before it really crashes. So he started buying in large quantities.
He bought these real estate trust not because he liked real estate, but just because he saw an opportunity. He made a million in the upward trend. When the collapse of his prediction came true three years later, he made more money by shorting.
Soros manages hedge funds almost doubled every year, and by 1973 he had managed $50 million in assets.
Soros' investment style has a shocking feature that he doesn't bet as often as the short-term trader, but when he really bets, the bets are usually very large. Sometimes he would take risks with his entire portfolio.
Soon his fund size exceeded his own management scope, and he needed to find someone of his level to be his partner. Then he found Jim Rogers .
Jim Rogers grew up in Damopolis, Alabama, and grew up during a turbulent period in the southern United States. Jim Rogers is a talented student who studies politics, economy, and philosophy at Yale University.
Like Soros, Rogers 's view on financial markets is also global. He believes that the world market is an interrelated system, and each element affects each other.
The financial tradition of the United States is to exchange the US dollar for gold, but in 1971, US President Nixon announced the decoupling of the US dollar from gold, and the modern era of inflation began.
In 1972, Soros and Rogers realized that a structural change would take place in the banking industry.
The banking industry before the 1980s was very standardized, and becoming a banker was not a cool thing.Bank of the United States system stagnates, the industry is highly fragmented but strict controls are required. Bank stock implements appointment trading.
But soon Soros discovered that as loose capital flowed into the market, he realized that the banking industry was about to flourish. He instructed his traders to buy as much stocks as possible from big banks and make 50% profit of in less than a year.
Although the 1970s were a tough time for the United States, Soros made more money than anyone in the financial world. He is a true pioneer in macro investment.
In the 1970s, he also invested in Japanese, Dutch and France stocks, and the price of Japanese stocks doubled in a year.
By 1980, the assets managed by Soros Fund reached an astonishing $381 million. He renamed his fund " Quantum Fund ", which means the principle of uncertainty in in quantum mechanics .
Soros said: "When I was a kid, I often fantasized about becoming a god and then saving the world. Now I am more successful than others."
He can indeed see how the world works better than anyone else, but the market quickly made his ego humble.
The 1970s was a decade of surge in inflation in the United States. In 1973, the Federal Reserve tried to intervene by raising the interest rate, but it caused large-scale unemployment.
By early 1979, inflation rose by 8% compared with the previous year. Meanwhile, the dollar is depreciating rapidly. Ultimately, Federal Reserve Chairman Paul Volker decided that inflation must be lowered, even at the cost of mass unemployment.
While most investors think high inflation is a bad thing, Soros sees it as an opportunity.
U.S. inflation has reached its highest point in 32 years, and Volker's way to raise interest rates is to sell franchise notes on the market, some of which are sold at lower prices, so that the yield curve is expected to slid inverted.
This is exactly what Soros expected. He predicted that the economy would eventually recover, and then chose to go long long-term bonds, short stocks and short bonds.
but he chose the wrong time. Because the US economy has been strong for a long time than he expected.
In 1980, when Soros' prediction did not appear in time, his fund lost $80 million. This was his first huge loss. This loss hurt him a lot and also gave him a lesson in managing hedge funds.
In 1980, his fund lost 22%, half of which were cashed out by investors. He realized that this might be his end and it was time to choose to retire.
So George Soros chose to semi-retire and marry his second wife, 28-year-old Susan Webber.
He handed over the quantum fund to his successor Jane Marcus.
Jane Marcus is a 33-year-old mutual fund manager who had a 69% return on investment in in 1982. Soros Fund returned strongly in 1982, and he believed that Marcus would continue to maintain this high rate of return in the next few years. In 1983, he achieved a return of only 9%, which was a big embarrassment for his investors.
Soros thinks maybe no one can be as good as him. So in 1984, he returned after three years of retirement.
Reagan came to power at that time, and he believed that the highest task facing the country was to restore economic prosperity.
Reagan's principle is, first, reduce the marginal tax rate of . Second, relax regulations. Third, control government spending. Fourth, follow the low inflation monetary policy .
Reagan's way of keeping inflation low is to make the dollar stronger. This means that the United States can import cheaper goods, so the price level will drop.
But Soros has a different idea. He believes that Reagan's policy of maintaining a strong dollar is a disaster for the United States, but it is also an opportunity to make a big profit for him.
He has longed the yen and the German mark while shorting the US dollar, and his prediction is about to become a reality.
On September 22, 1985, central banks of countries around the world began to lower the dollar exchange rate.As of the end of October, the dollar fell 13% against yen and 25% a year later. Soros made a total profit of $150 million. The rate of return is as high as an astonishing 122%.
In order to make more profits, Soros sometimes uses ten times leverage . The danger of doing so is that if the market trend is contrary to what he predicts, he may be really destroyed.
After making huge profits in 1986, Soros believes that his predicted doomsday state will come a little later. So he began to buy US stocks in large quantities, hoping to catch the last bus before the stock market crashed.
But his timing was wrong again. Even if long-term and short-term interest rates fell, Dow Jones Index could not be saved, and Soros ended up in a loss.
He was in a liquidity crisis, the predator is now prey, Soros sold his assets in the market, and this time he became an on-the-trade meal on Wall Street.
Soros' prediction of economic collapse was correct, but he didn't choose the right time. The stock market crash in 1987 made Soros want to retire again.
Later Soros recalled: "I started thinking, why did I keep committing suicide to make money? I walked from one bank to another on the street and tried to arrange it. I felt like I was about to have a heart attack in . It was then that I realized that this pressure to make money was really not worth it. If it would kill me, it was that I decided to change direction, so I decided to go back to charity instead of continuing to take a bold risk."
Soros found a young fund manager to take his place.
After Soros left, his fund's performance began to improve again. Therefore, people speculate that Soros uses charity to approach leaders of the world in order to better understand world economy .
Of course, this may just be an "another way of expression" that people admire the myth he created!
Bank of the United States system stagnates, the industry is highly fragmented but strict controls are required. Bank stock implements appointment trading.But soon Soros discovered that as loose capital flowed into the market, he realized that the banking industry was about to flourish. He instructed his traders to buy as much stocks as possible from big banks and make 50% profit of in less than a year.
Although the 1970s were a tough time for the United States, Soros made more money than anyone in the financial world. He is a true pioneer in macro investment.
In the 1970s, he also invested in Japanese, Dutch and France stocks, and the price of Japanese stocks doubled in a year.
By 1980, the assets managed by Soros Fund reached an astonishing $381 million. He renamed his fund " Quantum Fund ", which means the principle of uncertainty in in quantum mechanics .
Soros said: "When I was a kid, I often fantasized about becoming a god and then saving the world. Now I am more successful than others."
He can indeed see how the world works better than anyone else, but the market quickly made his ego humble.
The 1970s was a decade of surge in inflation in the United States. In 1973, the Federal Reserve tried to intervene by raising the interest rate, but it caused large-scale unemployment.
By early 1979, inflation rose by 8% compared with the previous year. Meanwhile, the dollar is depreciating rapidly. Ultimately, Federal Reserve Chairman Paul Volker decided that inflation must be lowered, even at the cost of mass unemployment.
While most investors think high inflation is a bad thing, Soros sees it as an opportunity.
U.S. inflation has reached its highest point in 32 years, and Volker's way to raise interest rates is to sell franchise notes on the market, some of which are sold at lower prices, so that the yield curve is expected to slid inverted.
This is exactly what Soros expected. He predicted that the economy would eventually recover, and then chose to go long long-term bonds, short stocks and short bonds.
but he chose the wrong time. Because the US economy has been strong for a long time than he expected.
In 1980, when Soros' prediction did not appear in time, his fund lost $80 million. This was his first huge loss. This loss hurt him a lot and also gave him a lesson in managing hedge funds.
In 1980, his fund lost 22%, half of which were cashed out by investors. He realized that this might be his end and it was time to choose to retire.
So George Soros chose to semi-retire and marry his second wife, 28-year-old Susan Webber.
He handed over the quantum fund to his successor Jane Marcus.
Jane Marcus is a 33-year-old mutual fund manager who had a 69% return on investment in in 1982. Soros Fund returned strongly in 1982, and he believed that Marcus would continue to maintain this high rate of return in the next few years. In 1983, he achieved a return of only 9%, which was a big embarrassment for his investors.
Soros thinks maybe no one can be as good as him. So in 1984, he returned after three years of retirement.
Reagan came to power at that time, and he believed that the highest task facing the country was to restore economic prosperity.
Reagan's principle is, first, reduce the marginal tax rate of . Second, relax regulations. Third, control government spending. Fourth, follow the low inflation monetary policy .
Reagan's way of keeping inflation low is to make the dollar stronger. This means that the United States can import cheaper goods, so the price level will drop.
But Soros has a different idea. He believes that Reagan's policy of maintaining a strong dollar is a disaster for the United States, but it is also an opportunity to make a big profit for him.
He has longed the yen and the German mark while shorting the US dollar, and his prediction is about to become a reality.
On September 22, 1985, central banks of countries around the world began to lower the dollar exchange rate.As of the end of October, the dollar fell 13% against yen and 25% a year later. Soros made a total profit of $150 million. The rate of return is as high as an astonishing 122%.
In order to make more profits, Soros sometimes uses ten times leverage . The danger of doing so is that if the market trend is contrary to what he predicts, he may be really destroyed.
After making huge profits in 1986, Soros believes that his predicted doomsday state will come a little later. So he began to buy US stocks in large quantities, hoping to catch the last bus before the stock market crashed.
But his timing was wrong again. Even if long-term and short-term interest rates fell, Dow Jones Index could not be saved, and Soros ended up in a loss.
He was in a liquidity crisis, the predator is now prey, Soros sold his assets in the market, and this time he became an on-the-trade meal on Wall Street.
Soros' prediction of economic collapse was correct, but he didn't choose the right time. The stock market crash in 1987 made Soros want to retire again.
Later Soros recalled: "I started thinking, why did I keep committing suicide to make money? I walked from one bank to another on the street and tried to arrange it. I felt like I was about to have a heart attack in . It was then that I realized that this pressure to make money was really not worth it. If it would kill me, it was that I decided to change direction, so I decided to go back to charity instead of continuing to take a bold risk."
Soros found a young fund manager to take his place.
After Soros left, his fund's performance began to improve again. Therefore, people speculate that Soros uses charity to approach leaders of the world in order to better understand world economy .
Of course, this may just be an "another way of expression" that people admire the myth he created!
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-