You could argue that investors money is more important than your own capital, especially for someone of Soros's caliber, it's his reputation. Even for a small time manager it's important, if he loses client funds he's screwed. There's no reason why the average Joe trader can't adopt some of his money management and compounding principles though, they make perfect sense when you think about it. Soros's GBP trade is what he's best known for but it wasn't his only trade, what did it return, 15%?
They usually calculate such as compounded and that is 45% annual. Still very good but much less than 410%...
Plus that is (probably) net of fees. So that's closer to 55-60% annualized in gross terms, before fees.
And that's only 3.2% per month compounded. Then take into account the way he compounds gains and it's probably even less than that. Like you say it's still extremely good for a fund that size but it puts it into perspective a bit, 4100% is like wow, 0.15% per day not so wow.
What an absolute load of horseshit. Your screen name is about the most appropriate one I could imagine for someone making an idiotic statement like this.
Did Soros ever go into his trading methodology. Was he short term trader or long term investor or both. I'm assuming he used technical as well as fundamental analysis.
Based on this chat, I got following data (approximately): 1. About 14 year 2. About 250% return 3. About return = 9.4% compound Does the above calculation look ok? Or did I miss some thing?
Lousy returns for a legend (snicker) but completely expected. http://money.cnn.com/2000/04/28/mutualfunds/soros/