George Soros is a billionaire investor who uses a hedge fund strategy that searches for mispriced assets based on macroeconomics. Those assets can come from anywhere in the world and be of any type, including bonds, currencies, stocks, interest rates or commodities. Soros also concentrates his portfolio among a few assets (see here). I think this strategy of "concentrating" is important because:
1. It allows the investor to spend less on transaction fees.
2. It increases the odds of getting higher yields. If the investor has a basket of stocks, all assets need to gain 100% to double all of the invested money.
This strategy, however, also has risks, because if the assets fall, the investor could get burnt. Thus, it is important to pick an asset that has minimal downside. However, picking an asset that has minimal upside is not a very good move either, in my opinion. I also like looking for an asset (or stock) that I can hold for at least a year to minimize taxes while still enjoying a strong yield.
So let’s look at the top stocks that George Soros is buying as of February 23rd. The top black line in each graph is overbought, and the bottom line is oversold. Green circles are bullish signals. Red circles are bearish signals.
Detail Source: http://seekingalpha.com/article/255550-a-look-at-8-stocks-that-george-soros-is-buying
No comments:
Post a Comment