George Soros HonFBA (born Gyorgy Schwartz on 12 August 1930) is a financier and philanthropist of Hungarian and American descent. As of March 2021, he had a net worth of $8.6 billion after donating $32 billion to the Open Society Foundations, of which $15 billion had already been distributed, representing 64% of his original fortune. Forbes referred to Soros as the “most generous giver” (in terms of percentage of net worth) in a recent article. He is a New York resident.
Born in Budapest to a non-observant Jewish household, Soros moved to the United Kingdom in 1947 after surviving the Nazi occupation of Hungary. The London School of Economics awarded him a Bachelor of Science in philosophy in 1951 and a Master of Science in philosophy in 1954.
Before establishing his first hedge fund, Double Eagle, in 1969, Soros began his career working for British and American merchant banks. In 1970, this fund’s profits provided the initial capital for Soros Fund Management, his second hedge fund. Double Eagle was renamed Quantum Fund and served as Soros’s primary client. Quantum Fund had $12 million in assets under management at its inception; by 2011, it had $25 billion, representing the majority of Soros’ net worth.
Soros is known as “The Man Who Broke the Bank of England” because he profited $1 billion from the short sale of US$10 billion worth of pounds sterling during the 1992 Black Wednesday UK currency crisis. Soros formulated the General Theory of Reflexivity for capital markets based on his early studies in philosophy to provide insight into asset bubbles, fundamental/market value of securities, and value discrepancies used for shorting and swapping stocks.
Soros Bazi Chart
Soros 10 Years Luck Pillar
Many of you may be familiar with Near-Death-Experience (NDE), but fewer may be familiar with the following. Regardless of what happens in your life after an NDE, you will ultimately achieve prosperity.
This plainly describes George Soros. He and his family escaped the NDE and attended LSE (London School of Economics) before traveling to the United States to literally make billions for themselves.
George Soros’s Bazi does not contain a compelling chart. In reality, the majority of successful people do not have a strong Bazi chart, but they have surmounted obstacles in life to reach their current position.
Some analysis short-cuts are to be highlighted here. Soros was born in the horse year. As some of you may be aware, those born in the year of the horse must move far away from their birthplace in order to achieve success in life. And this is precisely what Soros did. Those who are born in the year of horse also have some property luck and are able to have some properties for themselves in their lifetime. Of course for a billionaire like Soros, he did own several lucrative properties. (please refer to the YouTube video below by Alux.com)
Further investigation reveals that on September 16, 1992, Soros successfully wagered against the British pound, forcing the Bank of England to abandon the European Exchange Rate Mechanism (ERM). This news made international headlines. Did he did it alone?
The short answer is unquestionably not. The market is simply too large for Soros to manipulate alone at that time.
Given that Soros’s Day Master is an Jia Wood, it follows that he has the ability to command the market if he so chooses. But this is not so straightforward. The financial market is extremely volatile and unforgiving; it does not care who you are unless you attempt to make money for them. As a result, as the market fluctuates, more and more individuals are preparing for the future.
His thesis centered on the ERM. It effectively prevented the central banks of participating countries from adjusting interest rates, making it difficult for them to independently regulate their economies. Due to their inability to combat inflation and unemployment, the weaker economies and currencies were doomed to deteriorate further. Speculators who believed this would become a problem and that countries would be compelled to devalue their currencies saw this as an ideal opportunity.
Soros’ wager depended on the belief that the pound was overvalued and that the British government would be compelled to devalue it in the future. He began purchasing German marks and selling pounds, wagering that the value of the pound would decline. Soros also purchased British and sold short German securities based on the capital flow into fixed assets in countries with strong currencies. The Bank of England was compelled to intervene in the market to support the pound as Soros’s wagers grew.
The Bank of England increased interest rates to 15%, but this had little effect on the decline of the pound. Throughout the remainder of the day, the interest rate would be adjusted three times, eventually falling back to 12%. That day, the British government spent a total of $29 billion to halt the demise of their currency.
On Black Wednesday, the pound reached a record low against the mark. The Bank of England was compelled to abandon the ERM and permit the unrestricted floating of the pound. Consequently, the pound fell even further, and Soros made an estimated $1 billion profit. The impact was significantly greater for businesses with exposure to the pound, indicating that Soros’ wager was merely a small piece of a complex puzzle that turned out to be very profitable for him.
Soros’s wager against the pound is a complex event with extensive repercussions. It is a tale of economic turmoil, political intrigue, and financial conjecture. It is also the tale of an individual’s ambition and willingness to take risks.
He presented his thesis (or anti-thesis) in opposition to the efficient market hypothesis. He is one of the first individuals (possibly the only individual) to discuss the contradiction of the efficient market hypothesis and to demonstrate it by becoming a self-made billionaire.
Few people are able to identify the flaw in the classical economic method of thinking, let alone implement it. Soros did precisely that; he demonstrated it, and several volumes have been written on the subject. Students and alumni of London University’s economics program should read and appreciate Soros’ theory of reflexivity.