Billionaire Concepts: Scoring a Billion Dollars in One Day

by Minority Fortune

georgesorosWe have a new investor favorite, and he goes by the name George Soros. (We still love you guys, Warren Buffet and Peter Lynch!) He’s been hailed as one of the best investors of all time. His records backs up the claim. He began his own company, Quantum Fund, in 1969. From 1970-2000, Investopedia notes that the fund boasts an average annual gain of 30%, a feat almost impossible to replicate by amateur investors.

His most historic feat was earning one billion US dollars in one day on September 6, 1992. Yes, that’s one day!  He suspected that the English currency wouldn’t be able to sustain its propped-up valuation due to several factors. One factor was due to England joining the European Exchange Rate Mechanism with a high valued currency that caused other European nations to put pressure on England. The other factor was due to England’s high levels of inflation and interest rates that were straining the government. Soros anticipated its devaluation and shorted $10 billion USD on the Pound. His prediction was realized when the English government caved into the pressure and released its currency from the fixed-rate system.

Things to Learn from Mr. Soros:

•    Learn your trade. George Soros didn’t earn one billion dollars off of luck. He honed his craft and invested in his education. He attended school at the famous London School of Economics.
•    Stick to the data: The man is a smart investor because he acts on data and steers clear of emotional investing. His returns are a reflection of that.
•    Show No Mercy: George Soros has been apart of several controversial trades that alerted the attention of those caught in the headlights. Investing billions into betting that a currency will fall doesn’t exactly go unnoticed. Furthermore, you might even gain some enemies from your stance. It didn’t stop George Soros. He stood firm on his research.

Soros has built a remarkable empire. He doesn’t get the attention that Buffett gets, but the proof is in his work. Quantum Fund is still yielding above average returns, and they’re not about the BS. The fund has been closed off to new investors for years, and it’s based in the Curaçao and Cayman Islands. So, we’re certain the company gets away paying little taxes on the gains. The investor has certainly crossed all his t’s and dotted his i’s for success and profit. It’s a job well done.

*Image courtesy of LA Times.
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