A Short Summary Of Slater's Book On Soros

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SOROS SUMMARY Soros The Worlds Greatest Investor By Robert Slater 1. “I was born poor but I will not die poor.” 2. Master financial theorist. Financial world is NOT rational, no logic. Financial world is CHAOS. Discern the chaos and you will become rich. Mathematics do NOT govern financial markets. PSYCHOLOGY governs financial markets. The Herd Instinct. [Apply to trend quant systems, meant to catch psychology of trends] 3. Sit back and Wait when you know you are right. GO FOR THE JUGUALR. British Pound example. Sold $10 billion. 2007 Credit example. 4. Ice Cool. No Emotion. My function in the markets is to be a critic, and my critical judgments are expressed by my decision making. 5. Currently. Government involvement increasing, therefore irrationality increasing therefore volatility going forward increasing. 6. Make money for money’s sake, not to be wealthy. Must be a game. 7. Father taught him its all right to take risks. Most risks worth taking. But you must make sure there is room to recover (ie do not bet the ranch). Also taught him there is a gap between perception and reality. 8. Popper. Open societies better than closed. Also taught Soros how and why people think in certain ways. 9. I came to the conclusion that basically all our views of the world are somehow flawed or distorted, and then I concentrated on the importance of this distortion in shaping events. 10. Think Big Thoughts is what Popper taught him. The more you are able to define your efforts in abstractions, the better you will be in practicality. “Perceptions” is the one word that is key to his thinking. 11. We cannot look at ourselves objectively. Therefore all views are flawed or distorted. Efficient Market Theory therefore massively flawed (view that investors can have perfect knowledge of a company, therefore every share valued

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