Soros on Soros: Staying Ahead of the Curve

by George Soros

George Soros Ends the Speculation

"The outcome [of this book] is a summing up of my life's work. . . As I finish the book, I feel I have succeeded."-George Soros from the Preface

Critical praise for Soros on Soros

"If you have ever wanted to sit down for a candid conversation with a phenomenal financial success, George Soros's book provides the opportunity. You will meet a complex man and a first-rate mind."-Henry A. Kissinger

"The best expert on Soros is undoubtedly George Soros! After all, who is better equipped to tell us what he really thinks and how he thinks, a matter of some importance given the fact that he has translated a remarkable personal financial success into a truly generous and historically significant effort to promote postcommunist democracy." -Zbigniew Brzezinski

"The best X-ray of the mind of the master yet." -Barton M. Biggs

"George Soros brings a lot more to the world of finance than the intuition and nerve of a born trader-and in Soros on Soros he's no longer bashful about telling us about it. A philosopher at heart, George attributes his success at investing to a theory of the interaction of reality and human perception. What really drives the man now, with a personal fortune beyond all personal need, is a different kind of strategic investing-investment to build in Eastern Europe the kind of open societies he came to value in his own life." -Paul A. Volcker

Financial guru George Soros is one of the most colorful and intriguing figures in the financial world today. Now in Soros on Soros, readers are given their most intimate and revealing look yet into the life and mind of the one BusinessWeek dubbed, "The Man Who Moves Markets."

Soros on Soros interweaves financial theory and personal reminiscence, political analysis and moral reflection to offer a compelling portrait of the world (and its markets) according to Soros. In an interview-style narrative with Byron Wien, Managing Director at Morgan Stanley, and with German journalist Krisztina Koenen, Soros vividly describes the genesis of his brilliant financial career and shares his views on investing and global finance, politics and the emerging world order, and the responsibility of power.

Speaking with remarkable candor, he traces his progress from Holocaust survivor to philosophy student, unsuccessful tobacco salesman to the world's most powerful and profitable trader and introduces us to the people and events that helped shape his character and his often controversial views.

In describing the investment theories and financial strategies that have made him "a superstar among money managers" (The New York Times), Soros tells the fascinating story of the phenomenally successful Soros Fund Management and its $12 billion flagship, Quantum Fund. He also offers fresh insights into some of his most sensational wins and losses, including a firsthand account of the $1 billion he made going up against the British pound and the fortune he lost speculating on the yen. Plus: Soros's take on the devaluation of the peso and currency fluctuations internationally.

He tells of the personal and professional crises that more than once threatened to destroy him and of the personal resources he drew upon to turn defeat into resounding victory. And he explains his motivations for establishing the Soros Foundation and the Open Society Institute through which he worked to build open societies in postcommunist countries in Eastern Europe and the former Soviet Union.

Finally, turning his attention to international politics, Soros offers keen insights into the current state of affairs in Russia and the former communist bloc countries and analyzes the reasons behind and likely consequences of the West's failure to properly integrate them into the free world. He also explores the crisis of the ERM and analyzes the pros and cons of investing in a number of emerging markets.

Find out what makes one of the greatest financial wizards of this or any age tick. Soros on Soros is a must read for anyone interested in world finance and international policy.

Genres: Finance, Biography, Business, Economics, Nonfiction, Philosophy, Politics

336 pages, Paperback

First published January 1, 1994

About the author

George Soros is a Hungarian-American financier, businessman and notable philanthropist focused on supporting liberal ideals and causes. He became known as "the Man Who Broke the Bank of England" after he made a reported $1 billion during the 1992 Black Wednesday UK currency crises. Soros correctly speculated that the British government would have to devalue the pound sterling.

Soros is Chairman of Soros Fund Management, LLC.
As one of history’s most successful financiers, his views on investing and economic issues are widely followed.

Reviews

[Akhil Jain · Rating 4 out of 5]

Page 12 |
"I would rather call myself an insecurity analyst."
Page 12 |
"To others, being wrong is a source of shame; to me, recognizing my mistakes is a source of pride."
Page 17 |
"The market climbs on a wall of worry."
Page 60 |
"that a thinking participant is in a very difficult position, because he is trying to understand a situation in which he is one of the actors."
Page 61 |
"Financial markets are characterized by a discrepancy between the participants' perceptions and The Theory of Investing the actual state of affairs. At times it is negligible; at other times the course of events cannot be understood without taking it into account."
Page 137
"People act as robber capitalists because that is the only way they can become capitalists in a lawless society."
Page 167
"You yourself called the United Nations ineffective and wasteful. Why is that? Very simple. It is an association of sovereign states. The members are guided by their national interests, not by the collective interest. And the organization is responsible not to one master, but to many. This compounds the defects of bureaucracies because the main objective of a bureaucracy is to survive. Having many masters engenders a can't-do, protect-your-behind attitude. By a process of natural selection, only those whose primary concern is to preserve their jobs will survive in their jobs. But the selection is not natural to start with."
Page 168
"a sunset clause whereby the existing arguments expire, and a new start is made."
Page 190
"He showed that scientific method does not need inductive logic: it can rely on testing instead. Only theories that can be tested qualify as scientific."
Page 191
"I propose that we need three categories—true, false, and reflexive. The truth value of reflexive statements is indeterminate."
Page 200
"Yes. If we accept that out understanding is inherently imperfect, we can build a value system on that insight. That is what I have done with my belief in my own fallibility."
Page 203
"A strictly theoretical concept, based on the discrepancy between thinking and reality. There are two different ways of dealing with that discrepancy. Open society recognizes that there is a discrepancy; closed society denies it."
Page 205
"Science is the crowning glory of the human intellect, and it is firmly based on a belief in its own fallibility. If scientific theories embodied the ultimate truth, there would be no point in testing them and scientific advance would come to a halt."
Page 206
"But open society suffers from a fatal flaw. People living in open societies do not accept the concept of open society as an ideal worth fighting for. It can be seen why this should be so. Open society provides freedom of choice. If it is denied, it is worth fighting for it; but if it is available, it does not suffice—the choices still need to be made. You can't be just a democrat; you must be a social democrat, a liberal democrat, a Christian democrat, or whatever. That is why democrats always fight among themselves, whereas those who advocate a closed society can remain disciplined and united."
Page 213
"I am not opposed to all forms of national feeling. I am opposed only to the kind of nationalism that holds, "it is my country, right or wrong.""
Page 214
"Being in the minority, they are practically forced into critical thinking."
Page 217
"Your problem is that you like to do interesting work. Someone who wants to get rich doesn't care what he does. He only focuses on the bottom line. All day long he thinks about how Philosophy he can make more money. If that means setting up more shoe shine stands, that's what he does."
Page 229
"Members of a changeless society are like organs of a living body. They cannot live outside society, and within it there is only one position available to them: that which they occupy."
Page 229
"The individual is an abstract concept and as such has no place in a changeless society. Society has members, each of whom is capable of thinking and feeling; but, instead of being fundamentally similar, they are fundamentally different according to their station in life."
Page 240
"There is a circular relationship here: democracy can serve as an ideal only if it is effective, and it can be effective only if it is generally accepted as an ideal."
Page 240
"A variety of opinions is not enough to create democracy; if separate factions adopt opposing dogmas the result is not democracy but civil war. People must believe in democracy as an idea; they must consider it more important that decisions be reached by constitutional means than to see their view prevail."
Page 262
"True, dogmas eliminate the uncertainties that plague the critical mode, but only at the cost of creating conditions that the human mind would find intolerable if it were aware of any alternatives. Just as a doctrine based on a superhuman authority may provide an avenue of escape from the shortcomings of the critical mode, the critical mode itself may appear as the salvation to those who suffer from the oppression of a dogma."
Page 265
"Fundamental beliefs are less easy to justify by rational argument, but they may have greater emotional appeal exactly because they are more primitive."
Page 266
"To blame speculators is like shooting the messenger."

[Sally]

George Soros is fucking awesome! I didn't read the whole book, I mostly stuck to the stuff about his philanthropy, his philosophy, and his ideas about open and closed societies.



Apparently, his philosophy is faulted, but I admire that he's invested so much thought into it and tried his best to work out the kinks and to apply it to his life. Obviously, it's served him pretty well.



His philanthropy is pretty amazing. If you check out the open society website, you can see that his efforts (which started with selling photocopiers) have expanded to a zillion fields and efforts. His ideas about letting locals who are familiar with the problems take ownership and leadership were exactly the same as what I've been reading about social entrepreneurship, only he was one of the relatively few people who had it all figured out long before now. I also was interested in the ways that he tries to promote critical thinking, since it's sort of a pet concern of mine.



His ideas about open societies were likely nothing new, but I enjoyed reading it anyways, partly because it made some good connections and also because he is such a concise writer. I loved that he didn't puff up his writing, and that most of it was written in an easy-to peruse interview format. If I could pick one person to have dinner with, it would definitely be George Soros.

[Milan · Rating 4 out of 5]

He is a great speculator, a tireless philanthropist and as he calls himself a "stateless statesman".

In this book, George Soros is having a conversation about investing, philanthropy and philosophy. He talks about how he got into investing and how he looks at the markets. He speaks about his views on money and how it affects society. He discusses his ideas about open and closed societies. He discusses his ‘Theory of Reflexivity’ with some good examples. And he discusses the politics of Eastern Europe.

This book provides some useful insights about a great speculator. Some political views look dated as the discussion which turned into the book took 21 years back. Still it provides a very good view into the mind of George Soros.

[Nitin · Rating 5 out of 5]

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.

[Grig O' · Rating 3 out of 5]

I like George Soros. So it's inevitable that I find such a book endearing, including the more pretentious and even naive sides of it. Soros is a straight talker with a unique perspective and a hell of a life story. His theory of reflexivity served him well in finance and (less conclusively) in geopolitics, but as philosophy it's little more than a second-rate dialectics, and he knows it. Which doesn't make it any less interesting to hear him apply it to real world situations, even though some of the macroeconomics stuff went over my head.

Oh and if, like me, you're curious about how he reconciles his moral principles with financial speculation, here's a couple of quotes from the book:

"I fight for many causes in my life, but I don't particularly feel like defending currency speculation. I consider it a necessary evil. I think it is better than currency restrictions, but a unified currency would be even better. My defense is that I operate within the rules. If there is a breakdown in the rules, that is not my fault as a lawful participant but the fault of those who set the rules. I think that is a very sound and justified position, and I have absolutely no moral qualms about being branded a speculator. But as I say, I don't feel like waging a campaign trying to defend speculation either."

"I can afford to stand up for abstract principles. But I cannot expect others to do the same. I didn't do it myself until I became rich and if I had stood up for those principles earlier, I might not have become rich."

[Viktor Nilsson · Rating 5 out of 5]

An incredibly exciting read, having finished this book I'm quite amazed, but at the same time at a loss as to how to summarize either Soros' thinking, or my own reflections. Reading this book represented a quantum leap for me and I shall need some time to digest it and finding a way to express myself on this.

I previously read Soros' The Alchemy of Finance, a brilliant book that was too hard for me to penetrate. This one served as a much friendlier introduction into Soros' thinking, for speculation, philosophy and philanthropy alike. I found the essay on "open and closed societies" particularly illuminating, although it was probably what excited me the least when I picked up this book.

[Henry · Rating 5 out of 5]

This is an interesting book, arguably an earnest book from Soros. Soros chronicles his difficult upbringings - his dad’s ambitious young days that were beaten out of him by the reality of war years, his journey from Hungary to the UK, working in odd jobs to eventually having big breaks in the US. Speaking of the US, Soros recounted his journey with a little bit dark humor reality:

... When I applied for a visa, the authorities refused me. They said that I was too young, at 26, to be a specialist whose services were urgently required and could not be filled by local talent. F. M. Mayer then got an affidavit from Franz Pick, author of the Black Market Yearbook, who testified that arbitrage traders had to be young because they died young. On that basis, I got the visa. But I never forgot his affidavit and I got out of the arbitrage trading business as fast as I could.

Perhaps because the publicity Soros received from his Quantum Funds’ (which, interestingly in the book, Soros mentioned was renamed (was previously named the Soros’ Fund) because he decided to semi-retire and wanted his name out) smashing successful from shorting the British Sterlings, lots of legends were spread about him. Yet, fundamentally Soros was not a god, he was keenly aware of how insecure he was in his trading years. He wrote:

I recognize that I may be wrong. This makes me insecure. My sense of insecurity keeps me alert, always ready to correct my errors.

He also linked his younger years’ behaviors with his own poor mental health. He was honest enough in the book to mention after extensive amounts of therapy he became a completely changed man later in his life.

While conceptually, I do understand Soros’ business. But as a value investor, I simply can’t fathom how anyone like Soros can consistently get the timing right even if their macro thesis is correct. In this book, Soros speaking of value investors:

... there are value investors who do extremely well. Value investors don’t do so well in our shop, because they don’t have anybody to talk to.

Soros also explained how some of his peers work by seeing the market as a casino, the market participants as gamblers:

...He looked at markets as a casino where people act as gamblers and where their behavior can be understood by studying gamblers. For instance, gamblers behave differently on Mondays than on Fridays, differently in the morning than in the afternoon, and so on.

The book also explained a lot about his Open Society idea and his theory of Reflexivity (which was explained more in his earlier book). Overall an interesting read.

[Steven · Rating 3 out of 5]

Some interesting remarks on finance and economics, and Soros' life work: philanthrophy, the politics of Eastern Europe, and so on. His philosophy of 'reflexivity' is also interesting, he explored it in more depth, but large swaths of the book is boring, ideas repeat.

[Eli · Rating 4 out of 5]

Soros on Soros is the culmination of George Soros’ life work. It touches on his childhood, his theory of reflexivity, his failed career as a philosopher, his successes and failures at the Quantum Fund, the psychology of running a fund, and his philanthropy. I found the beginning of the book excellent—reflexivity is a fascinating concept and Soros is honest, humble, and possesses an impressive intellect.

George Soros’ theory of reflexivity can be summed up in the following quote: “I believe that a thinking participant is in a very difficult position, because he is trying to understand a situation in which he is one of the actors.” He uses reflexivity to persuasively critique the theory of efficient markets, explain boom/bust processes well, and articulates trade ideas (Breaking the BOE) brilliantly.

Reflexivity is why forecasts are often wrong. Maybe the work underlying a forecast was fundamentally solid, but whenever you forecast an event, you affect the dynamic you are forecasting. If you don’t take your own affect into account, you will be wrong. When you are evaluating other people’s analysis (perhaps in investing/trading), you must take into account three levels of analysis:

1. The work they did and the factors they uncovered
2. The role their research may have played in changing these dynamics
3. The role you will play in changing these dynamics when you act on the research

Many errors occur when people only focus on step 1) and often blindly follow the work or recommendations of others (Ex: following sell side stock recommendations).

If the book stopped after Part 1 (Investing and Global Finance), it would have easily merited 5 Stars. However, Soros attempts to apply his theory of reflexivity beyond markets and into politics and philanthropy. The jump is rather complicated and I often disagreed with his logic here. I felt he strayed beyond his strengths and wound up hurting the overall book. The governing idea behind his philanthropy and politics is one of an “Open Society.” He tries to explain the theory of open societies several times (rarely clearly) and when he does, his philanthropy and politics often don’t seem to entirely match with his visions, appearing to contradict himself:

1. “Open society is based on the recognition that we all act on the basis of imperfect understanding. Nobody is in possession of the ultimate truth. Therefore, we need a critical mode of thinking; we need institutions and rules that allow people with different opinions and interests to live together in peace; we need a democratic form of government that ensures the orderly transfer of power; we need a market economy that provides feedback and allows mistakes to be corrected; we need to protect minorities and respect minority opinions. Above all, we need the rule of law.”
2. “I am a law-abiding citizen, but I recognize that there are regimes that need to be opposed rather than accepted. And in periods of regime change, the normal rules don't apply. One needs to adjust one's behavior to the changing circumstances.”

That being said, I do understand where his philosophy comes from. He is a “stateless statesman,” a man without a true country and so he feels he rises above the level of political consciousness most citizens reside. His life story is incredibly interesting and I especially enjoyed his frank admissions of his own psychological weaknesses. I found much of what he talked about relating to dealing with stress and emotions helpful. Despite being one of the most successful people of the modern era, he comes across quite humble and very likeable. He is far more gifted as a trader than a philanthropist/political philosopher and perhaps that is why he excelled in finance, but failed as a philosopher. Overall, I greatly enjoyed the book, but felt the sections on his political philosophy and philanthropy were a step-below the sections on his investing career, his philosophy on markets, and his admissions of his psychological weaknesses. Below are a few of my favorite quotes:

1. On the failure of competitive markets: “The prevailing wisdom is that markets are always right. I take the opposite position. I assume that markets are always wrong…My sense of insecurity is satisfied when I know what the flaw is. It doesn't make me discard the thesis. Rather, I can play it with greater confidence because I know what is wrong with it while the market does not.”

2. On having conviction: “The market always destroys the weak-that is, investors who don't have well-founded convictions. You need some convictions to avoid getting faked out, but having the courage of your convictions could get you wiped out if your convictions are false. So I prefer to take a stand only when I have well-founded convictions.”

3. Insecurity and intuition: “I am not a professional security analyst. I would rather call myself an insecurity analyst…I recognize that I may be wrong. This makes me insecure. My sense of insecurity security keeps me alert, always ready to correct my errors. I do this on two levels. On the abstract level, I have turned the belief in my own fallibility into the cornerstone of an elaborate philosophy. On a personal level, I am a very critical person who looks for defects in myself as well as in others. But, being so critical, I am also quite forgiving. I couldn't recognize my mistakes if I couldn't forgive myself. To others, being wrong is a source of shame; to me, recognizing my mistakes is a source of pride.”

4. On discipline: “When you are a serious risk taker, you need to be disciplined. The discipline that I used was a profound sense of insecurity, which helped to alert me to problems before they got out of hand. If I gave up that discipline, I would have to fall back on due diligence and other forms of routine and routine is not my strong point. I was afraid to admit my success because it might undermine my sense of insecurity. Once you take your success for granted, you let down your guard. When you are in trouble, you just sit back; you know you are successful and you will always get out of trouble somehow. That's when you have lost your ability to get out of trouble.”

[Daren Doucet · Rating 4 out of 5]

The Quantum fund. One of the most famous investment vehicles, the financial world has ever known. Talks about the Nazi invasion into Hungary, at 14 years old, and how he escaped it. A believer in open societies, he is a great philanthropist for the creation of open societies in countries which are closed. He set up several foundations for a cause he truly believes in.

Mr. Soros talks about the instability in the world just before 1995, the year the book was printed. He goes on to explain of what may become of the former Soviet Union, and other countries that were undergoing substantive changes at that time. Also, his thoughts of the role of the United Nations, NATO, and the United States are seemingly widely held views of that time, and perhaps still today.

An interesting read, but the economics was difficult to understand for someone who never studied it. He does look at things from an imperfect model, tries to anticipate all scenarios, before going ahead with a stock move. A good book for any economist.

[Brian Zheng · Rating 5 out of 5]

Well regarded as the best trader in our time, Soros detailed his philosophy of trading and his philosophy about the world, politics as well as his idea of open society. The book is carried out in interview form and I feel it�s easier to follow compared to his earlier book: The Alchemy of Finance. Amazing although he is well rewarded in the financial market, he think financial market is only the experiment lab for his �Reflexivity� theory/hypothesis. Some people think Soros is �Great mind but terrible writer�, I have to say it also gives me some headache when I try to understand his philosophy. Nonetheless, you will find the terrific mind and his investing style from the first 100 or so pages of the book.

[Song Medina-Babijes · Rating 5 out of 5]

It's heavy reading, but Soros gives a very succint and simple explanation of the economic forces that keeps countries ahead of their game. For those who want to understand the global economy better, trust Soros to be very informative and concise.

[Arthur · Rating 3 out of 5]

Interesting philosophy and dogma from the man who started it all - with leverage in the world of finance.

[Kai · Rating 5 out of 5]

This book is what happens when you get biography x philosophy x finance x history x polisci... Soros basically called the breakdown of the cosmo world order 30 years ago. Book hasn't pressed all my buttons like this in a long time.

---

“You are predicting a breakdown in free trade... I am not predicting it, but I can envisage it. The danger is that people are not aware of the danger. Everybody talks about the global financial markets as if they were irreversible. But that is a misconception.

It involves a false analogy with a technological innovation like the internal combustion engine. Once the automobile was invented, it spread like wildfire. It may be improved, it may even be superseded by a superior invention, but it cannot be abolished.

Not so with a financial innovation. It differs from a technological invention in the same way that social science differs from natural science.”

---

“At the risk of becoming too abstract, I should like to make a more general point.

We have gone a long way toward opening up the globe to free movement of goods and services and, even more importantly, ideas. The international flow of capital has become largely unrestrained. Even people can move more freely.

But the establishment of this global system has not been matched by an acceptance of the principles of open society. On the contrary, international relations continue to be based on the principle of national sovereignty, and the internal political regimes of many nations fall well short of the standards of an open society.

In the economic sphere, there is practically no recognition that financial markets, particularly the international financial markets, are inherently unstable. Markets are, by definition, competitive. But unrestrained competition, without regard to the common good, can endanger the market mechanism.

This idea runs counter to the prevailing belief that competition is the common good. Even if the need to preserve the system is recognized, it takes second place to getting ahead within the system.

Look at the rhetoric of the last few years: it is all about competitiveness, very little about free trade. With this attitude, I cannot see the global system surviving. Political instability and financial instability are going to feed off each other in a self-reinforcing fashion.

In my opinion, we have entered a period of global disintegration, only we are not yet aware of it.”

---

“1. We are entering into a period of world disorder, and the sooner we realize it, the better our chances of preventing the disorder from getting out of hand.

2. The theoretical concepts of open and closed society are particularly useful in understanding the present situation.

3. Communist dogma has lost its sway over people's minds, and it is almost inconceivable that it should regain it. On the contrary, the pendulum is swinging the other way, toward laissez-faire.

4. There is a real danger of nationalist dictatorships arising in formerly communist countries.

5. To mobilize society behind the state, you need an enemy. The rise of nationalism is likely to be associated with armed conflicts.

6. Nationalist dogma may intermingle with religious dogma, and the trend is likely to spread beyond the confines of the former communist world. You may find Russia or Serbia defending Christianity against Islamic fundamentalism, and vice versa.

7. Democracies suffer from a deficiency of values. They are notoriously unwilling to take any pain when their vital self-interests are not directly threatened. Therefore, they are unlikely to prevent the spread of nationalist dictatorships and conflicts.”

---

“Well then, what does bring you joy?”

“As a student, I read a book called The Adventure of Ideas. I think it was Alfred North Whitehead who wrote it. I would say that it’s the adventure of ideas that attracts me.

Basically, thinking is the most important aspect of my existence. I’m quite contemplative. I like to understand. I used to do a lot of philosophical speculation as a young man. I wasted a large part of my youth regurgitating certain ideas.

Then I discovered that one can learn a great deal more through action than through contemplation. So I became an active thinker, where my thinking played an important role in deciding what actions to take, and my actions played an important role in improving my thinking.

This two-way interaction between thinking and action became the hallmark of my philosophy and the hallmark of my life.”

[Ross Goldberg · Rating 5 out of 5]

Wow – really, really enjoyed. I was familiar with Soros as money manager and the Sterling Crisis but not familiar with his philosophy and philanthropy. I enjoyed how principled he is (in the literal sense). I found his sense of self-awareness rare: he comes across as genuinely philosophical, not just in self-conception but also in his ability to consider contradictions.
What also stood out was how well formed his theories are. The theories are well formed, in my view, but they never gained mainstream acceptance in economics or politics. Below is a summary of the four major sections of the book.

1. Money and Markets
a. Explained as a summary version of his highly technical investing book “The Alchemy of Finance”
b. Soros outlines the theory of reflexivity – he proposes markets don’t just reflect reality, but that market participants imperfect understanding of that reality has an impact on future events
i. This gives rise to boom/bust cycles, and divergences in fundamentals
c. Firmly opposes efficient market or random walk theories

2. The Business of Philanthropy
a. The goal of the Open Society Foundation is to promote freedom, and democratic government, primarily in post-soviet states / Eastern Europe
b. This is an investment with social returns
c. Only became a philanthropist when he determined he had more money than he had use for personally

3. The Future of Open Society
a. An open society is one that recognizes the fallibility of humans and the lack of absolute truth – it allows for open debate of the best policies, governance, etc.; a closed society is based on absolute truth, dogma, or nationalism etc. it allows for no deviation from “the party line”
b. Collapse of communism in eastern Europe was a tremendous opportunity for the expansion of open societies, but western nations mostly failed the test
i. Instead, nationalism / authoritarianism appears likely to take hold in place
c. Soros compares open societies to air: those who have it take it for granted, while those without it view it as crucial to life. This leads to the paradox that open societies are unlikely to defend the concept of an open society, while those without would die for it.

4. Life in Full
a. Interesting thoughts on childhood under Nazi and Soviet rule, Judaism, nationalism
b. His dual identity, capitalist speculator and philosopher philanthropist
c. Thoughtful reflections on aging, money, and power


Final takeaways:
The book is a rare mix of markets, politics, and philosophy, woven into a single cohesive world view. It’s no small task as it took him most of his life to get there. The interview format is really engaging, giving the book a conversational feel. Insights on political outcomes / conflict in Europe, Russia, Ukraine, and America were incredibly thoughtful at the time and prescient now.
That said the book is full of contradictions. Soros is a man who contributed to market destabilization for profit, while funding social stability to achieve philosophical / political aims. He accepts the tensions which may be his most valuable contribution of all.

[TMK · Rating 4 out of 5]

* I watch whether the actual course of events corresponds to my expectation. If not, I reexamine the thesis and try to establish what has gone wrong. Then adjust it.
* I don't have a particular style of investing or, more exactly, I try to change my style to fit the condition
* Trend follower will get hurt when the trend change; Most of the time I am a trend follower, but all the time I am aware that I am a member of a herd and I am on the lookout for the inflection points.
- I am ahead of the curve. I watch out for the telltale signs that a trend may be exhausted. Then I disengage from the herb and look for a different invesment thesis.
* Anyone who is in a risk taking business but cannot face the consequence is no good.
* Philosophy is the most important part of my life.


- Once we realize that IMPERFECT UNDERSTANDING is the human condition, there is no shame in being wrong, only failing to correct our mistake.
- I don't believe in these scientific measuring method because they're generally constructed on the assumption of efficient market theory. That theory is in conflict with my theory of IMPERFECT UNDERSTANDING and REFLEXIVITY.
- If it couldn't be leveraged, we wouldn't be making that particular investment.
- We do try to simplify rather than complicate
- We are Quantum Fund, that is, a performance fund that rewarded mainly in proportion to our profits rather than according to the amount of money we manage (Most fund maximize the amount of money they manage to attract investor and not to leave them)
- They get it right, then they get too cocky, and eventually it catches up to them. I'm not exempt from that. It often happens that when thing go well, I relax, and then they start going wrong.

[Jamie · Rating 3 out of 5]

George Soros is so quotable in this book that as a review to it, I'm just gonna quote him.

"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. So my decisions are really made using a combination of theory and instinct. If you like, you may call it intuition."

"Once we realize that imperfect understanding is the human condition, there is no shame in being wrong, only in failing to correct our mistakes."

"There is nothing like danger to focus the mind, and I do need the excitement connected with taking risks in order to think clearly. It is an essential part of my thinking ability. Risk taking is, to me, an essential ingredient in thinking clearly."

"Our understanding of the world in which we live is inherently imperfect. There is always a discrepancy between the participant's views and expectations and the actual state of affairs. Sometimes the discrepancy is so small that it can be regarded but, at other times, the gap is so large that it becomes an important factor in determining the course of events. History is made by participant's errors, biases, and misconceptions."

"I'm blessed with an extremely poor memory, which allows to deal with the future rather than the past."

"In my philosophy, open society is based on the recognition that we all act on the basis of imperfect understanding. Nobody is in possession of the ultimate truth."

[Robert · Rating 5 out of 5]

Soros is known by many as the “man who broke the Bank of England” and one would be forgiven for assuming that he is a brusque, buccaneering speculator. This couldn’t be farther from the truth! Soros styles himself as a “failed philosopher” – indeed, he spent several years attempting to do original work on philosophy, developing the ideas that would later become Reflexivity Theory. Since the philosophical establishment largely ignored his work (possibly with good reason – it’s hard to know), he applied his theories to markets and the rest is history.

Soros on Soros is a classic look at his life and philosophy. The discussions on Reflexivity Theory were excellent (see these lectures for a possibly more accessible introduction), but I particularly appreciated the overview of Soros’ epistemology (from which Reflexivity Theory derives). His entire worldview – encompassing Open Society, Reflexivity Theory, financial markets – derives from one core statement: “I believe in my own fallibility”. Based on this one axiom, he builds a cogent and practical theory of decision-making in a world where the decisions of thinking participants impact reality. It doesn’t make a huge difference to me whether these ideas are original in the context of Western Philosophy, or that Soros is probably too imprecise to satisfy “true” philosophers – the ideas are fascinating and seem to have explanatory power.

Something that comes through very clearly (perhaps the hint is in the title) is Soros’ incredible capacity for introspection. This is a characteristic that seems to be shared by many other hedge fund legends (as per the Market Wizards series) but Soros takes it to the extreme. It’s abundantly clear that he has deeply reflected on his goals and weaknesses:

I recognize that I may be wrong. This makes me insecure. My sense of insecurity keeps me alert, always ready to correct my errors. I do this on two levels. On the abstract level, I have turned the belief in my own fallibility into the cornerstone of an elaborate philosophy. On a personal level, I am a very critical person who looks for defects in myself as well as in others. But, being so critical, I am also quite forgiving.

Soros on Soros is, at times, a challenging read (it has taken me several weeks to trawl through the highlights I made!). But this is only because it is so full of wisdom, the bulk of which I’m sure I haven’t been able to appreciate on the first pass. I look forward to reviewing my highlights a few months from now – I’m sure there’ll be many nuggets I missed!

My highlights here.

[Shijin · Rating 3 out of 5]

I read it for his investment philosophy, which is fascinating and gave me more than I expected. Besides the two chapters on this topic, the book is okay at best. The man obviously cares deeply about his public image. So don't expect much authenticity. I mean it's just not a good way to learn about him. The interviewer provides little value besides getting him to talk about himself. But the book is still worth getting if you're interested in his investment strategy. The way he thinks about the market is unique and deeply philosophical, a rare introductory piece.

[Red Fox · Rating 3 out of 5]

Interesting to read Soros given his initial rise to financial prominence and his later branching into matters of politics.

Claims he started trading better when he did not demand perfect information.

Thesis is Reflexivity - the participant affects the market, so the market isn't perfect and efficient

As he branches from finance into policy, he states that freedom is not merely the absence of repression, and only an "Open Society" can deliver constant improvement

[Stephen Muzira · Rating 3 out of 5]

Sample great but full book not so much

The sample on kindle was great with exciting q&a with very witty and informative by Soros on investment. When one buys the whole book it meanders in not so interesting terrain of philanthropy and politics. Not worth the $28! Regret buying the full book

[Brian · Rating 4 out of 5]

Even though this book is now quite dated (it was published in 1995) the thinking in it is still very good. It covers a range of topics from investing and wealth to geopolitics and philosophy. His argumentation for an open society is very good.
It is interesting to see the analysis and predictions from almost thirty years ago and compare it with what has actually happened.

[Laurenz Schneeberger · Rating 4 out of 5]

Clearest articulation of Soros' reflexivity and investment philosophy I've found so far (although that's not saying much, parts of the book are a head scratcher and need to be read twice). Must read, but limit yourself to chapters 1-5 (investing) and 9 (epistemology and reflexivity). Quick read, you can get through these chapters in around a day. Very enlightening.

[Miriam · Rating 2 out of 5]

Can you think of a more vain glorious title? Soros likes to think of himself as a great philosopher. This book does not buttress that claim. He is a great trader and portfolio manager. Let's stop there, please.

[MO And J · Rating 5 out of 5]

Interesting take on markets, cycles and finance. Behavioral economics and finance at their finest. Theory of reflexivity at work.

[Zeqiong Huang · Rating 5 out of 5]

Eye opening to me.

[Aleksej · Rating 5 out of 5]

The best book based on a bunch of interview notes I ever read. Each interview lets us to look on George Soros' life and philosophy from a different angle.

[Sangam Agarwal · Rating 4 out of 5]

Read it like biography. You will know more about his personal life and professional journey in this book

[Chirag Jivan]

An interview style read offering insights to George's mindset throughout his growth in finance.

[Ethan Lambert · Rating 3 out of 5]

For those interested about the investing & macro part only the first half of the book is relevant.