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The Alchemy of Finance

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Description

New chapter by Soros on the secrets to his success along with a new Preface and Introduction.New Foreword by renowned economist Paul Volcker"An extraordinary . . . inside look into the decision-making process of the most successful money manager of our time. Fantastic." ―The Wall Street JournalGeorge Soros is unquestionably one of the most powerful and profitable investors in the world today. Dubbed by BusinessWeek as "the Man who Moves Markets," Soros made a fortune competing with the British pound and remains active today in the global financial community. Now, in this special edition of the classic investment book, The Alchemy of Finance, Soros presents a theoretical and practical account of current financial trends and a new paradigm by which to understand the financial market today. This edition's expanded and revised Introduction details Soros's innovative investment practices along with his views of the world and world order. He also describes a new paradigm for the "theory of reflexivity" which underlies his unique investment strategies. Filled with expert advice and valuable business lessons, The Alchemy of Finance reveals the timeless principles of an investing legend.This special edition will feature a new chapter by Soros on the secrets of his success and a new Foreword by the Honorable Paul Volcker, former Chairman of the Federal Reserve.George Soros (New York, NY) is President of Soros Fund Management and Chief Investment Advisor to Quantum Fund N.V., a $12 billion international investment fund. Besides his numerous ventures in finance, Soros is also extremely active in the worlds of education, culture, and economic aid and development through his Open Society Fund and the Soros Foundation. Read more

Publisher ‏ : ‎ Wiley (June 15, 2015)


Language ‏ : ‎ English


Paperback ‏ : ‎ 391 pages


ISBN-10 ‏ : ‎ 0471445495


ISBN-13 ‏ : ‎ 94


Item Weight ‏ : ‎ 2.31 pounds


Dimensions ‏ : ‎ 6.1 x 1.3 x 8.9 inches


Best Sellers Rank: #29,678 in Books (See Top 100 in Books) #19 in Investment Portfolio Management #59 in Accounting (Books) #65 in Stock Market Investing (Books)


#19 in Investment Portfolio Management:


#59 in Accounting (Books):


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Top Amazon Reviews


  • I would recommend to anyone who wanted to peer inside the Palindromes ...
One of the most powerful yet underrated books on finance and economics ever. The book has not received its due praise primarily because the writing tends to be a little muddled and distracting, and the main idea offered in the book is revolutionary and definitely runs contrary to the popular held beliefs of efficient market theory- and this is why the book is so valuable. I would recommend to anyone who wanted to peer inside the Palindromes mind to go and first read "Soros on Soros" which is a kind of brief overview of the ideas offered in this book but done in an interview style so the writing is much more cogent and readable. But, once you have finished that I would definitely recommend reading "Alchemy..." The ideas and information offered inside are powerful and game changing to those who can understand them- which certainly doesn't take a PHD, just an open mind and bit of thought. In fact, it was after reading this book that the young Stanley Drunkenmiller sought out George Soros and asked to work with him, and Paul Tudor Jones, made it a requirement to read and understand this book before joining his fund. If that is not enough of a referral then I don't know what is. Read this book, take notes, and internalize the lessons and ideas inside and you will much better off for it. ... show more
Reviewed in the United States on October 19, 2014 by Alex B.

  • A truly unique read
For those that know finance, know Soros. This book is one of the few where he details how he looks at things. From popler's reflexiveness to EPS/PE. A worthwhile read.
Reviewed in the United States on January 7, 2024 by Travis Hookham

  • Enlightening
May I say I have read but 40 pages and concur that this book definitely provides insight casually overlooked by those hotheaded enough to dismiss things as this or that. Perhaps Mr. Soros is stating at protracted length by the girth of the book but he stocks it with many examples which I find helpful (I read out of order so my 40 pgs are all over the book). Reflexivity seems to be some aftermath of relativity and/or a socialized version of Newton's 3rd law, where the reaction is not reciprocated 180 degrees or of equal momentum, but at a variant angle at a sensible force. I read along and in reading this I am complementing my Bergson "Matter and Memory" which lends great weight to the textual stretches Soros regales in. George Soros has quite credibly depicted the details of empirical business to a degree most ignore and operate off of with heuristic reaction. A man who spells out what everyone is just saying can profit from the faults of cadence and dis equanimity of many people's interpretation. This basically continues Marx's reductive division between singular and plural, as necessitated by communicable mediums, and results in asymmetry. Trends are social and crest and waver, but formed in certain mediums as are waves in an ocean and by shifts in the air current and to the land/gravity one can gauge to some modicum of satisfaction the tides to come. Nothing is 100 percent due or endogenously self-directing or regulating as we are members of a system and therefore produce tremors in our actions which disrupt or affect our observations (very Heisenberg indeed). ... show more
Reviewed in the United States on October 9, 2012 by I'm Doing

  • Soros's uncertainty principle is a vague form of Keynesian Uncertainty,not Heisenberg uncertainty
Soros has written a thoughtful and interesting book.However,there is nothing that is new theoretically.It was all said in a much more detailed and specific form in Keynes's A Treatise on Probability(TP;1921),where uncertainty(Soros's uncertainty principle-see pp.6-10,40) was analyzed mathematically using the variable called the weight of the evidence,w, in chapter 26( the weight of the argument in chapter 6 provided the logical analysis).Keynes used the term uncertainty in the GT to denote the same basic phenomenon applied to decision making involving a significant lack of knowledge and information on (a) investment in long lived durable capital goods subject to technological innovation over time(Daniel Ellsberg's nearly identical concept of ambiguity improves on Keynes's completely original formulation),(b)financial markets, and (c)liquidity preference decisions concerning the amount of liquid assets to hold for speculative purposes.Keynesian expectations are liable to sudden changes because they are not representable by the normal distributions's standard deviation(Risk),which is the basic foundation of E Fama's Efficient Market Hypothesis,Milton Friedman's Monetarism,Robert Lucas's rational expectations,and Prescott and Kydland's real business cycle theory,etc.Keynes's analysis appears in chapter 12,pp.239-241 of chapter 17, and in pp.314-320 of the General Theory(1936;GT).It is interesting to note that Soros's own method of dealing with uncertainty,by using one's instinct and intuition ,is identical to the manner in which it was handled by Keynes. Practically all of the examples from the financial markets used by Soros to show how his uncertainty principle(the reference to Heisenberg's uncertainty principle is defective since the probability distributions are known.What Heisenberg meant by uncertainty was risk.Only one of the two hypothesized probability distributions in Heisenberg's example can exist at any one moment of time) is operationalized could just as easily have been mistaken for Keynes's chapter 12 analysis in the GT.The value in Soros's book is that it provides a more modern set of examples that updates Keynes's chapter 12 analysis of how uncertainty impacts decision making.Risk is a very special case that occurs when there is no uncertainty about the future.Uncertainty automatically makes probability estimates indeterminate.They become intervals. Soros will have to be much more specific in the future about his uncertainty principle(reflexivity) so that a reader will be able to differentiate what Soros has done from what Keynes did(one must also mention Frank Knight's and Joseph Schumpeter's contributions in this area,although they are not nearly as specific and technical as the contributions of Keynes and Ellsberg). Soros needs to be devote much more time to reading and digesting Keynes's works.The few one liners that refer to Keynes in this book illustrate that Soros has not done all of his homework yet.A clear cut comparison -contrast between Keynes and Soros would allow a reader to decide what is original in Soros's approach and what is merely a variation on Keynes's theme of uncertainty impacting many of the most important financial and investment decisions that will determine the future. ... show more
Reviewed in the United States on May 27, 2008 by Michael Emmett Brady

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