Monday, August 1, 2011

Do not confuse Soro's retirement = hopeless future

I was saddened that, George Soros, one of the greatest investment gurus has decided to retire again. If my memory serves me right, this is his second retirement. He was leaving his fund to professional managers in his first retirement but decided to come out again during the financial crisis. With things turning around, I guess he has decided to retire permanently -- winding up his fund.

I truly admire his approach. It is not easy for people to let go when you are at your highest form. It takes tremendous amount of humility to bow out and close the final curtain. Some intepret his retirement is a turtle approach(hiding his head in his shell). At least this is what Market Watch perceives him in this headline "Soros’s decision protects money, legacy, influence"

(Market Watch) Don’t-mess-it-up money is the amount someone needs to be secure for the rest of their lives, to protect their dreams and aspirations, to ensure that they can withstand inflation and market woes while maintaining the peace of mind that they are set for life.

The rest of their assets? They could invest in scratch tickets or gamble at the track, bury it in the backyard or throw into equities, but their legacy and life’s work are safe.

George Soros, one of the world’s most famous investors and leading philanthropists, appears to have decided that, given current market conditions, he no longer wants to run the risk of messing things up. The media is reporting that the 80-year-old billionaire hedge-fund magnate is shutting down his hedge-fund operations and returning outside investors’ money. Read our report on Soros’s decision to wind down his hedge fund.

Soros’s sons said in a letter that the firm will continue to operate as a family business.

Clearly, Soros has enough money, power, prestige and respect. About all that could happen now is that he messes up his legacy, hurts his stellar track record and makes headlines that somehow detract from his political influence and philanthropic aims.

Soros made headlines late last year when he called gold “the ultimate bubble” and by early this year he had sold most of his firm’s stake, all while gold was still on the upswing. His history shows that the more turbulent the market, the less performance edge his funds deliver, and the market may never have been more unpredictable in his long investment career than it is right now.

At his age and with his legacy at stake, it seems like the ultimate sophisticated investor is acting like the average guy, and making sure that what he values the most — and what is most important to his future — is safe.

A lot of average folks, while lacking Soros’s resources, might at least want to look at the current market with the same concerns in mind.

I disagree that Soros winding down his fund is a sign of hopeless future(no money to be made kind of scenario). Everyone needs a retirement -- to stop playing the game that you are very good at, of course it has to be at the right time. At the time when tickets are fully sold out.

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