It was an historic and profitable day for George Soros and it became “Black Wednesday” for the United Kingdom. The day, September 17, 1992, when the British Pound Sterling lost 25 percent of its value compared against the American Dollar. While the entire economy of Britain was negatively affected by the drop in value of the Pound Sterling, the hedge fund of George Soros was reaping enormous profits from the transactions they were making; by betting on the decline of the Pound Sterling. In the history of investing and investors it was the day that George Soros, himself, made more than $1 billion. He and his hedge fund did invest $15 billion to be able to reap such a large return, but it remains as an investment that earned Soros, himself, a cool billion dollars in the course of one day’s trading. He, as director of his hedge fund, became a billionaire and his fund profited even more.
The machinations of the events leading up to this devaluation are detailed in a recent article in ValueWalk by the business staff, which is a shortened version of an article in Priceonomics. Read the Priceonomics article here.
Readers of these interesting and in-depth articles will more fully understand the movements of currencies and economies and how each country is connected to others. While readers may not know how to make a billion or a million from reading the story of George Soros, they will know some of the history of that investment and what led up to its becoming one of history’s most profitable investments on http://www.georgesoros.com/.
George Soros has lead a fantastic but dangerous life from his early experiences during the Second World War in his native Hungary to his times in England and then to his New York City experiences in investing, beginning in the late 1950s. George soros has amassed a great fortune and set up his Open Society Foundation in 1993 dedicated to helping democratic institutions around the world. He has little to do with his hedge fund now, and prefers to travel around the world lecturing at economic summits and writing books on economics and investing. Soros is one of the few billionaires who supports liberal causes on http://topics.wsj.com/person/S/george-soros/209, and as such the conservative media and especially Fox News often takes aim at this icon of the investing world. He is a man we should respect and cherish for his involvement in world economics and the work of his foundation. A man who will be 86 in August. We need to listen to him while we can.
Visit Project Syndicate to learn more about George.