Market prices are biased views

The generally accepted view is that markets are always right -- that is, market prices tend to discount future developments accurately even when it is unclear what those developments are. I start with the opposite view. I believe the market prices are always wrong in the sense that they present a biased view of the future.

- George Soros

Practical test

Making an investment decision is like formulating a scientific hypothesis and submitting it to a practical test. The main difference is that the hypothesis that underlies an investment decision is intended to make money and not to establish a universally valid generalization.

- George Soros

What is important

It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong.

- George Soros

What is wrong

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

- George Soros

Investing: Entertaining or Boring?

If investing is entertaining, if you're having fun, you're probably not making any money. Good investing is boring.

- George Soros

Turn-around

The worse a situation becomes the less it takes to turn it around, the bigger the upside.

- George Soros

Bublles due to misconception

Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.

- George Soros

Financial markets

The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to happen contradicts my way of looking at the market.

- George Soros

Money made by betting on the unexpected

Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.

- George Soros

Not preditions, but correct false ones

My approach works not by making valid predictions but by allowing me to correct false ones.

- George Soros