Customer Quote by George Soros
“Making an investment decision is like formulating a scientific hypothesis and submitting it to a practical test. The main difference is that the hypothesis that underlies an investment decision is intended to make money and not to establish a universally valid generalization.”
About This Quote
Source Interview: Financial Times, 1998
Investment decisions resemble testing a hypothesis: they are provisional, data‑driven, and judged by outcomes.
In simple terms: Investing is like testing a theory.
Key Takeaway
Treat investments as experiments.
Themes
finance
decision‑making
risk
uncertainty
Mood
analytical
cautious
Type
strategic
philosophical
When to use this quote
- portfolio building
- startup funding
- market entry
- product launch
Key Concepts
hypothesis testing
expected value
Questions to Reflect On
- What assumptions underlie your investment?
- How do you handle unexpected results?
A Different Perspective
Markets can change faster than any test can confirm.
![“I very often used to get backaches due to the fact that I was wrong. Whenever you are wrong you have to fight or [take] flight. When [I] make the decision, the backache goes away.” quote by George Soros](https://sms4smile.com/quotes/img-quotes/d1e/george-soros-1593_backache_i-very-often-used-to-get-backaches-due-t_38205.jpg)
![“We [at Soros Fund Management] use options and more exotic derivatives sparingly. We try to catch new trends early and in later stages we try to catch trend reversals. Therefore, we tend to stabilize rather than destabilize the market. We are not doing this as a public service. It is our style of…” quote by George Soros](https://sms4smile.com/quotes/img-quotes/f33/george-soros-1593_customer_we-at-soros-fund-management-use-options_113322.jpg)
