History of Losses: How George Soros Lost $2 Billion in Russia
Everyone knows George Soros, the American financier and investor who went down in history as the man who "brought down Bank of England"and has become a real legend in the world of finance. However, not many people know that in the career of the "great and terrible" Soros there were deals of much greater volume than the famous deal on the British pound sterling, but which had a negative result.
Убытки Джорджа Сороса: 2 млрд – в России, 3 млрд – на падении NASDAQ
One of such deals took place in 1997. Soros bought a stake in Svyazinvest, which was highly popular at the time, and ended up losing $2 billion on it. In the end, almost everything that Soros earned on the British pound deal remained in Russia. It is worth noting that George Soros invested about $1 billion in the sphere of Russian charity.
In 2000, after Soros "missed" the fall of the NASDAQ stock indexhis purse "lost" 3 billion dollars. However, everyone remembers that Soros earned $2 billion on the collapse of the pound sterling, but few remember the sum of $5 billion with a "minus" sign in the practice of the great investor.
Perhaps the reason for this is that Soros was able to turn a start-up capital of only $ 600 into $ 100 million in 10 years.. In addition, George Soros was one of the "pioneers" of the use of arbitrage rules in trading.
The losses of the great George Soros pale in the eyes of the financial world before the true elegance and beauty of profitable deals. The deal with the Japanese yen, which passed 1600 points in one day, was called by him "nonsense of a crazy nature" and brought Soros 40 million dollars.
There have been times in Soros' financial career when his profits have been comparable to the annual GDP countries like Chad or Guadeloupe.
To be sure, Soros had some investment problems and losses during the twentieth century, but the markets were influenced by his brilliant investment decisions in the '70s and '80s.
George Soros himself does not claim to be an ideal man. His expression - "I overcame all difficulties mainly because I admitted my mistakes" - should become one of the main theses of successful trading for every trader.