My biographer quotes my son Robert as saying:
My father will sit down and give you theories to explain why he does this or that. But I remember seeing it as a kid and thinking, Jesus Christ, at least half of this is bullshit. I mean, you know the reason he changes his position on the market or whatever is because his back starts killing him. It has nothing to do with reason. He literally goes into a spasm, and it’s this early warning sign.
Mr. Soros goes on to explain,
My son is right about the backache. I used to treat it as a warning sign that something was wrong in the portfolio. It used to occur before I knew what was wrong, often even before the fund began to decline in value. That is what made it so valuable as a signal. It would be wrong, however, to dismiss the theory on that account because it was the theory that me take the signal so seriously. I knew that I did not act on the basis on knowledge; I was acutely aware of uncertainty and was always on the lookout for mistakes. As I mentioned earlier, it is when I did not know the flaws in my positions that I had to worry. When I finally discovered what was wrong my backache usually went away.
The Irish Times celebrated the 84th birthday of “the most successful hedge fund manager in history” with an article on some lessons you can glean from Mr. Soros’ storied career. Included in the article was the following:
Soros has admitted to relying greatly on “animal instincts”, saying the onset of acute pain was often “a signal that there was something wrong in my portfolio”.
His decisions, then, “are really made using a combination of theory and instinct.
Sometimes our bodies express themselves from a base of unexplainable manifestation and intelligence. The question is: What do you do when your body speaks to you?