Tuesday, April 8, 2014

How to invest like Soros

But why would you want to do that? Better figure a way that is suitable for yourself. Can Soros invest like Warren Buffett and vice versa? Exactly, so why should any of us? There are somethings especially in sports where there is a defined way to technical perfection and then you craft your own genius. Investing is not one of those disciplines.

We are conceited but unaware. We think we can copy the greats and so be great ourselves. I think the path to investment success is the humility road. Many arrogant people make money but that is only inevitable even as some markets are zero sum, i.e., there must be winners and losers. Now take this over the long term, what happened? The successful are often humbled. The lucky few left the game before it is too late. They admit even if only privately to themselves that they were just lucky. On the other hand they have a public story of skill and dare to share with others. They may even become mentors but it is all humbug and full of self deceit. Their carefully constructed egos do not allow them to face the truth.

There is no lack of spectacular blow ups in this business.

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