George Soros
Who was George Soros?
Hungarian-American billionaire investor known for currency speculation, including breaking the Bank of England in 1992, and for funding democratic movements worldwide through his Open Society Foundations.
Biographical data adapted from Wikipedia’s article on George Soros (CC BY-SA 4.0).
Biography
George Soros, originally named György Schwartz, was born on August 12, 1930, in Budapest, Hungary, into a well-off Jewish family. His father, Tivadar Soros, a lawyer and writer, changed their surname from Schwartz to Soros in 1936. During World War II, they survived the Nazi occupation of Hungary by obtaining fake identity papers and going into hiding. This experience had a lasting impact on Soros's perspective and later charitable work. In 1947, Soros moved to England, taking various jobs before attending the London School of Economics. There, he studied under philosopher Karl Popper, whose idea of the 'open society' deeply influenced Soros and inspired the name of his charitable foundation.
After graduating in 1952, Soros had a hard time finding stable work in London's financial scene. He finally got a job with Singer & Friedlander, a merchant bank, which started his career in finance. In 1956, he moved to New York City and worked for several Wall Street firms, including F.M. Mayer, Wertheim & Co., and Arnhold and S. Bleichroeder. During this time, he developed his investment ideas based on his theory of reflexivity, which says that market participants' views affect market fundamentals, creating feedback loops that can push markets away from balance.
In 1970, Soros started his own hedge fund, initially named the Double Eagle Fund, later the Quantum Fund. The fund became highly successful, with average annual returns of over 30% for more than 30 years. Soros became famous on September 16, 1992, known as 'Black Wednesday,' when he short-sold $10 billion worth of British pounds, which led the Bank of England to pull the pound from the European Exchange Rate Mechanism and devalue it. This earned him around $1 billion and the nickname 'The Man Who Broke the Bank of England.'
Besides his financial achievements, Soros got more involved in charity and political activism from the 1980s onward. He set up the Open Society Foundations, donating over $32 billion to support democracy, human rights, and social justice worldwide. The foundation has helped civil society groups, educational institutions, and democratic movements across Eastern Europe, Africa, Asia, and Latin America. Soros has been especially active in supporting former communist countries transitioning to democracy, funding educational programs, media outlets, and human rights groups. His charity work has made him a controversial figure, with some governments seeing his efforts as meddling in their affairs.
Before Fame
Soros's rise began in Nazi-occupied Hungary, where his family had to be resourceful to survive. His father's choice to get false papers and navigate the risky wartime environment taught George about assessing risk and the instability of political systems. After the war, as a broke refugee in London, Soros worked as a railway porter and nightclub waiter while continuing his education.
The foundation for his later achievements was established at the London School of Economics, where he studied Karl Popper's ideas on fallibilism and open societies. This education, along with his experience of living under totalitarian regimes, influenced his approach to financial markets and his dedication to democratic values. His early years in London's financial world were filled with rejection and low-level jobs, but these experiences helped him learn about market psychology and international finance.
Key Achievements
- Generated $1 billion profit in a single day by betting against the British pound in 1992
- Built the Quantum Fund into one of history's most successful hedge funds with 30% average annual returns
- Donated over $32 billion through the Open Society Foundations to promote democracy worldwide
- Supported democratic transitions in Eastern Europe following the collapse of communism
- Developed the theory of market reflexivity, influencing modern financial economics
Did You Know?
- 01.He was initially rejected by every major London bank when seeking employment after graduation, forcing him to take menial jobs to survive
- 02.His famous bet against the British pound in 1992 required borrowing $6.5 billion and risking his entire fund's capital
- 03.He has written over a dozen books on finance, economics, and political philosophy, including 'The Alchemy of Finance' and 'Open Society'
- 04.The Quantum Fund he managed never had a losing year during his active management from 1970 to 2000
- 05.He spent $15 million of his own money in 2004 attempting to defeat George W. Bush's re-election campaign