George Soros Buying Stocks and Trimming Gold Holdings

George Soros, billionaire founder of Soros Fund Management, though characterizing the U.S. economy as “blah,” sees investment opportunities in the stock market. As recently as last October, he warned that Germany’s relatively tight fiscal policy could send the EEC into a “deflationary spiral,” so he’s not entirely bullish.

George Soros has two sons who are now the actual managers of Soros Fund Management, however the billionaire did train and instill his investment philosophy in them, so it’s reasonable to believe they reflect his thinking. An examination of the firm’s holdings from the end of the third quarter shows a clear pattern. The top stocks in terms of Soros Fund Management equity show increases in positions of many of them, ranging from pharmaceuticals, to communication, to agriculture and energy.

Contrast this with sales of Kinross Gold shares. The sale represents only a small portion of Soros Fund Management holdings in that stock, but the fact that it’s happening at all is revealing.

According to Tickerspy.com, Soros Fund Management outperforms the market, so the billionaire deserves examination. Tickerspy.com does not charge for tracking and comparing stock portfolios. You can examine 250 indexes in areas ranging from metals to commodities to dividends to Exchange Traded Funds, as well as compare portfolios of about 3000 hedge funds and other Wall Street firms.

One tool they use for comparison purposes is “Pro portfolio performance.” This is based on the fifteen top holdings of a fund and does not include any other investments, so it can be misleading. Positions the SEC does not require disclosure of are omitted, but what is reported is comprehensive enough to give a reasonably accurate picture, even if not totally precise. The data is reported in end-of-quarter filings with the SEC, so it is easy to compare apples to apples.

Having made a good investment, it’s a natural human tendency to be impressed with one’s own cleverness and to hang on to it too long. The 1979 Hunt brothers-fueled silver bubble comes to mind. Gold bugs may be more recent examples.

Billionaires, such as George Soros, have access to information not available to commoners. It makes sense to assume he is not in business to lose money and to examine and consider copying his approach. George Soros did not become a billionaire by making emotional, poorly thought out investments.

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