This is a book summary of “Soros on Soros – Staying Ahead of the curve “.
- We try to simplify things. We don’t have a real or a scientific way to measure risk. People who are in the derivative business have very elaborate risk calculations. We are amateurs.We live in the Stone Age. Deliberately so.
- Lots of the current day methods and calculations work 99% of the time. I am more concerned with that 1%. I see a systemic risk that cannot be encapsulated in those assumptions that generally assume a continuous market. I am interested in discontinuities and everything else is of little use to me.
- Most money managers try to maximise the fund and give average return as they are paid based on the money they manage. We try to maximise profits of the fund as we receive a percentage of the profits.
- I do not play according to a given set of rules; I look for changes in the rules of the game.
- I work with Hypotheses. I form a thesis about the anticipated sequence of events and then i compare the actual course of events with my thesis; that gives me a criterion by which i can evaluate my hypothesis.
- I have a given set of theoretical frameworks in investing. I tend to select situations that fit into that framework.
- My decisions are really made using a combination of theory and instinct. If you like, you may call it intuition.
- My critical faculties are way stronger than analytical faculties. I should not be called a security analyst, but and insecurity analyst.
- Trend is your friend most of the way; trend followers only get hurt at inflection points, where the trend changes.
- Most of the times we are punished when we go against the trend. Only at an inflection point are we outrageously rewarded.
- There is almost nothing more self destructive than to deny your feelings.
- There are incredible money makers whom i don’t trust, and whom i wouldn’t want to have as partners.
- Risk taking is to me, an essential ingredient in thinking clearly.
- There is nothing like danger to focus the mind, and i do need the excitement connected with taking risks in order to think clearly.
- I look for the flaw in every investment thesis. When i find it, i am re-assured. As long as i can see only the positive side, i am leery.
- I am good at riding the tide but not ripples of the swimming pool.
- I am willing to use different people employing different approaches as long as I can rely on their integrity.
- Running an investment portfolio is not work in the ordinary sense of the world. It essentially is just risk taking.
- The amount of work you do is inversely related to your success in the in investing business.
- When i have to, i work furiously because i am furious that i have to work. When i don’t have to, i don’t work.