'The Alchemy of Finance'
Hello there, I've just acquired an another interesting book written by Mr. Soros, 'The Alchemy of Finance'. If any of you have read it (I assume some must have), what did you like about it, is it still relevant and, very importantly, what do you think about the theory of reflexivity in financial markets?
P.S. I am not sure whether or not this is the correct forum but given that Mr. Soros is/was a hedge fund manager, I posted this topic here.
Great book, highly relevant still to this day, reflexivity is a very interesting idea that can help your thought process in investing a lot
As per the above, it's an all time classic, but I've personally found it a fairly hard read due to the amount reflexivity (read: circularity) in his own writing... However, reflexivity is exactly what allows you to come up with 2nd / 3rd / 4th degree thinking ideas. Chances are if you try and apply this you'll find a couple "how did I not think of this before" nuggets.
Thanks for sharing your views. By the way, I'm applying to Oxford and other targets (undergrad) this year, should I mention that I read such books? I've also read 'Market Wizards', 'Trading in the Zone', 'Intelligent Investor' and 'Reminiscences of a Stock Operator'.
You can, although do note Oxbridge is all about academic excellence as opposed to it being a practical degree university. Therefore, I'd be careful that you don't come across as one of the kids who want to go into high finance. However, if you can spin it into something that would appeal to the academics of the world, more power to you. Generally for UK UG, as you know, showing extensive wider reading in an efficient / smart manner is always a plus - can't just name drop though as that's weak.
I found it to be very theoretical, however reflexivity is something we face in everyday life not just financial markets
Yes, definitely. Relfexivity is everywhere.
Tough read, but worth it
Re-read it every year or so once you start working. Becomes more and more enlightening each time. #1 book I'd recommend for someone in macro.
not what you want to hear, but it's the worst finance book I've ever read. not because of content, Soros is brilliant, just a bad book in my opinion.
but then again, I'm a bottom up guy who prefers to get his macro from history, philosophy, psychology, and politics.
for whatever it's worth, I've hated most everything Mohamed El Erian has written, and hes touted by many as a brilliant macro mind. although, I did like Jim Rogers' work and he worked for Soros, so idk.
For such a talented speaker, Soros is a remarkably terrible writer.
I recently purchased it but have not read it. I did however read all 5 of Soros' lectures on Reflexivity and its implication in financial markets and society that he delivered in 2009. In total, it is 50 pages. They are fascinating, with the first being the densest.
All available here: https://www.opensocietyfoundations.org/multimedia/george-soros-open-soc…
Separately, you may enjoy reading Stanley Drunkenmiller 2015 talk. He ran Quantum Fund for Soros and explains what it is like working with him. Great talk. https://www.gurufocus.com/news/329154/full-transcript-of-stan-druckenmi…
Regarding college apps, no idea personally. However, if you want to look more into philosophy, start reading Will Durant, starting with Lessons of History, which actually discusses Open Societies that Soros talks about so much.
Not a fan of the theoretical part, nonetheless the application is definitely worth reading. Soros is, or was, extremely good at self-criticism and rather quick to admit when he was wrong. His macro predictions in the book contain things that decades later make you smile for how wrong they turned out to be, but he adapted and was extremely successful.
Soros is a literally nation wrecking Inter-dimensional-lizard-person. Every word he speaks or writes is a subversive lie in order to forward his people's agenda. He made a shit ton of money by wrecking nations (leveraging his rootless, international network of politicians) then shorting the host nation's currency as the country collapsed, followed by financing select opportunities in the ensuing chaos.
Guess what he's doing it again. Do you think that $17bn check to fund unlimited migration from Africans and Arabs into Europe was for Humanitarian purposes? Absolutely not. PROFIT. It's the same old game with these inter-dimensional-lizard people. Probably a second-order priority of making way for greater Israel and a third-order priority of revenge for the holy-cost.
When an inter-dimensional lizard person is communicating with you, you need to understand that he is in the process of fucking you over. Any book written by one of them should be rounded up and symbolically burned. Same with the lizard people themselves.
That book is so freaking good. Yes, the writing is terribly obtuse, but the part on reflexivity and the regulatory pendulum is such a good way to think about things. I need to remember to read Karl Popper as a matter of fact. Same goes for that little writeup on a stock sector, so concise, identifies the story, where the value is...
The trade diary can feel like a trudge but what is so important to see is how quickly the direction of trades change on new information, how there is a lag between decisions and results and what goes into deciding whether to fold or not. A few moments that prove it's better to be lucky than good provided you manage your risk correctly.
I really enjoy Market Wizards, the Drobny books etc... but despite how inscrutable the book sometimes feels, you can feel the passion for markets, you can tell "this guy gets it." Love it.
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