Billionaire George Soros is a shrewd and perceptive investor. It should be of no surprise Soros Fund Management LLC disposed of its Chesapeake Energy, Chevron and NRG Energy holdings in Q4, 2015 as reported in The Street.
Most of us are not millionaires, so the quickest way to become one is to observe and assess a billionaire investor’s buy and sell strategies. Is it in your best interests to unload energy sector stocks for more auspicious growth sectors? The next seven days will shed light on Soros’ strategy and whether he is pulling the trigger early or believes that tumultuous times lie ahead for the energy sector.
Energy pricing has acted as a pendulum in 2016, rocking back and forth on the slightest notion of instability, setting off equity market volatility. With news outlets reporting that Russia and Saudi Arabia collaborating to peg oil production to prop up prices, oil reversed course and rose. The price rise was short lived as Iran objected to the pricing strategy.
Iran holds 20% of the planet’s known petroleum supply and believes that by flooding the marketplace with oil will increase demand. Iran, still stinging from a protracted worldwide oil embargo, that crippled its economy, seeks to punish those nations that supported the embargo, with depressed prices.
Investors, unsure of the energy sector stocks direction, were scratching their heads as to its impact on the rest of the stock market. U.S. crude oil finished the week at $29.64 a barrel, far below the mid-2014 peak of $110 a barrel. The Standard & Poor’s 500 is sliding with oil’s retreat, with a decline of 5.82% so far.
Born in 1930, Hungarian immigrant George Soros is a self-made billionaire investor. Soros fled Hungary during World War II and settled in England. He is a graduate of the London school of Economics. In the United States, he was a trader and analyst, at brokerage and financial institutions, which enabled him to sharpen his financial market prediction skills. He established Soros Fund Management LLC and is a renowned philanthropic benefactor of the Open Society Foundation, which promotes democracy and worldwide human rights.
One of his greatest financial coups occurred in 1992 when he speculated and shorted the British pound, risking $10 billion. His gamble garnered just shy of $2 billion in profit. This strategy earned him the moniker “the man who broke the Bank of England.”