Planet Money George Soros vs. the Bank of England
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Dec 4, 2024 In this intriguing discussion, George Soros, a legendary investor and philanthropist, reflects on his iconic 1992 hedge fund trade against the British pound. He shares insights into the strategic motivations behind the daring bet, contrasting the approaches of his team with the Bank of England's attempts to maintain currency stability. The conversation dives into the intense financial battle of Black Wednesday, highlighting the profound impact of speculative trading on national policy and the lessons learned from that historic moment.
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Soros' Office
- Robert Johnson joined Soros' hedge fund in 1992 and found their midtown Manhattan office surprisingly unimpressive.
- Despite the modest setting, the team, including George Soros and Stan Druckenmiller, was impressive.
The Opportunity
- Druckenmiller saw an opportunity to short the British pound, believing it was overvalued.
- He consulted with Robert Johnson and Scott Bessent, who agreed on the pound's vulnerability.
Go for the Jugular
- Soros encouraged them to bet big, even using leverage, leading to an adrenaline rush for Johnson.
- Soros' famous phrase, "go for the jugular," reflects his aggressive investment strategy.