George Soros, the Hungarian-born refugee that broke the Bank of England more than 20 years ago, is considered one of the smartest investors in the world. Soros is worth more than $24 billion, and he earned all that money betting on stocks and other commodities. The Soros hedge fund has made an exceptional amount of money for the limited partners over the years, but George Soros bought most of those partners out a few years ago, and now the fund is only family money. George is not afraid to invest that money in risky assets that other investors won’t touch, but his new investment in a gold mining company is producing a new gold rush. Investors are running into the gold market, and the price of gold has jumped more than 2 percent in the first quarter of 2016.
Barrick Gold is one of the world’s largest precious metal miners, and the Soros hedge fund now owns a serious amount of shares shares of that stock. George Soros decided to sell more than 37 percent of other stock holdings in order to invest in gold. The price of Barrick Gold’s stock has risen by 44 percent since Soros made that investment. But gold is not the only investment that Soros has in his pocket, according to Bloomberg.com. Soros invested in Argentina a few years ago after meeting with former President Cristina de Kirchner, and his investment in debt bonds have produced some impressive returns. The current president of Argentina, Mauricio Marci, made a deal with the hedge funds that de Kirchner burned when she defaulted on more than $100 billion worth of bonds several years ago. After that deal was sealed, Argentina was allowed to offer more than $65.5 billion in bonds to investors around the world. Soros was one of the first investors in line to buy the new bonds.
Some investment experts say George Soros doesn’t always win, but he wins more than he loses and that’s the mark of an investment genius. Soros made a billion dollars in February 2013, when he bet the Japanese yen would have to be devalued after new Prime Minister Abe announced a stimulus package that put an unusual burden on the Bank of Japan. Soros is betting that his fund is going to make even more money when the Chinese are forced to devalue their currency because of the bad loans that the government and the banks are supporting through capital reserves.
The amount of money that Soros stands to make over the next 18 months is an incredible amount. But Soros bets big, and when he wins, he wins big. That’s the mark of a true gambler that has a Midas touch.
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