Author Topic: The Alchemy of Finance by George Soros  (Read 1507 times)

hodedofome

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The Alchemy of Finance by George Soros
« on: October 24, 2014, 01:55:32 PM »
I actually didn't care much for this book. Global macro trading fascinates me, but this book was hard to read. Lots of big words, not very well written, I believe it was actually transcribed from some speeches he had made. Don't expect to get many ideas for becoming the next global macro genius. About the only thing I really took from the book was when Soros finally admitted he made most of his decisions with his back. When his back would ache, he'd realize he had made a mistake in the portfolio somewhere and he'd start selling off positions until it felt better. This tells you that no matter how smart you think he is, he actually made plenty of mistakes. His genius was not in his intelligence, but rather in admitting that he was wrong in his analysis and was quick to correct it.

Soros is IMO the greatest money manager of our time. Even greater than Buffett (Soros has enjoyed higher returns even though Buffett is richer). His success can be attributed much less to luck as he made tens of thousands of trades over his lifetime. In other words, there's a much greater sample size for his outperformance. Buffett has made relatively few trades so, in theory, anything could have happened. However, this book was a tough read and I really didn't enjoy it.