Always wrong Quote by George Soros
“Market prices are always wrong.”
About This Quote
Source Book: The Alchemy of Finance, 1987
Market prices often deviate from true value due to irrational behavior and misinformation.
In simple terms: Markets misprice assets.
Key Takeaway
Seek value beyond apparent prices.
Themes
finance
valuation
irrationality
information
Mood
analytical
cautious
Type
educational
philosophical
When to use this quote
- investment
- trading
- portfolio management
- policy making
Key Concepts
behavioral economics
risk assessment
Questions to Reflect On
- How do you identify mispricing opportunities?
- What safeguards protect against overconfidence?
A Different Perspective
Timing markets is notoriously difficult.
![“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_derivatives_we-at-soros-fund-management-use-options_113322.jpg)
