What George Soros Taught Stan Druckenmiller
George Soros has a philosophy I also have embraced: How to build long-term returns is by way of preservation of capital and home runs. You can be a lot more competitive once you're making great profits. Many managers, once they're up 30 or even 40 percent, will reserve their entire year [i.e., trade very cautiously for the rest of the calendar year so as to not jeopardize the very good return that has been realized]. The best way to attain tmly superior long-term returns would be to grind it out until you're up 30 or even 40 percent, and then if you have the convictions, go to get a 100 per year. If years, it's possible to assemble a few near-100 per cent years and prevent down, then returns can be achieved by you.
I've learned many things from him, but perhaps the most important is the fact that it's not if you're right or wrong that is important, but how much money you make when you're right and how much you lose when you're wrong. The few times that Soros has criticized me was when I was really right on a market and did not maximize the chance. Soon after I had begun working for Soros, I was very bearish on the dollar and place to a large short position from the Deutsche mark. The situation had begun going in my favor, and that I felt rather proud of myself. Soros came into my workplace, and we talked about the trade.
Link to first article: http://www.planbeconomics.com/2014/0...druckenmiller/