The Alchemy of Finance, by George Soros


I only listened to the audio book version but thought it was quite interesting. George Soros and Jim Rogers were running the Quantum Fund, which returned several hundred times investors' money within a few decades. So it is certainly important to understand Soros' thinking. He also admits to having had several years where he seemed to have "lost it", and in general he is a man of candor.

If one is looking for practical investment tips, one might be dissapointed and even be bored.
But if one likes to think philosophical, the book is quite good, and I thought it did have quite a few important points here and there, and most important made me thinking.

The key thought is certainly his theory that he calls "Reflexivity". Here, not only are investors influenced by economic developments, Soros argues that if enough investors join the crowd, they even drive the developments in a self fulfilling way. This is because industries being given enough capital can grow to an extent where they become powerful decision makers in the economic landscape.

Audio-book:   Book:
The Alchemy of Finance

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