Billionaire George Soros Now Has One Less Billion
It’s not every day that a person finds out that their stock trading cost them a billion dollars, but billionaire George Soros had one of those days on Thursday.
Multiple news outlets reported that the billionaire George Soros, famous in recent years for his connection to the United States Democratic Party, lost one billion dollars due to misreading the stock market following the election of Donald Trump to the presidency.
Soros was skeptical about the market before Trump’s victory, but after the election, Soros became downright bullish, according to The Wall Street Journal. These positions ultimately proved to be poor as the market rallied hard on the back of optimism in the markets shortly after the rise of Donald Trump. (Source: “Billionaire George Soros Lost Nearly $1 Billion in Weeks After Trump Election,” The Wall Street Journal, January 12, 2017.)
Soros had originally departed trading with the Soros Fund Management LLC, which manages about $30.0 billion for Soros and members of his family. But, with the markets as seemingly unstable as they were in the run-up to the election, he couldn’t resist. Returning to the fund, Soros hoped to make huge profits off the believed economic troubles that would follow a Trump—or perhaps even Hillary Clinton—victory.
Worse yet for the aging investment magnate, his former deputy Stanley Druckenmiller, who had incidentally helped the famed investor reap a billion dollars from betting against the British pound in 1992, proved to have the superior foresight of the two men, at least in this case. Druckenmiller was able to generate a profit following the election of Trump.
Both Druckenmiller and Soros were multi-million-dollar donors to opposite political parties, with Soros giving more than $20.0 million to the Democratic Party and Druckenmiller giving about $3.5 million to Republican candidates, including (at the time) Republican presidential hopeful John Kasich.
But don’t weep for billionaire George Soros. After all, he still has a couple dozen billion dollars to spare. And remember, investors, even the best in the business make mistakes now and again.