Surprising post could explain how legendary billionaire George Soros trades stocks
From Economic Policy Journal:
… George Soros, one the greatest hedge fund managers of our time, trades stocks differently than a mutual fund or hedge fund manager might today.
Soros was trained in economics at the London School of Economics. His view on stocks is driven by his macro view. He is less interested in what a company does or anything about its financials or fundamentals.
Soros trades stocks in sectors he expects to perform within his macro view.
When he likes a sector he usually purchases 2 stocks from it: First, the market leader… usually the largest market cap company.
The second stock he usually purchases is the cheapest, lowest priced stock in the sector.
He does this because he believes that if the sector takes off, the cheapest, most speculative stock will double or triple while the industry leading stock will just slowly go up over time…