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Billionaire George Soros Picks Up These 3 “Strong Buy” Stocks
Some investors achieve legendary status, rising far above their peers on a combination of luck and success. Perhaps no one exemplifies this more than George Soros, the Holocaust survivor who, after the war, earned a doctorate from the London School of Economics and went into the banking industry to make his mark. He was wildly successful. The hedge fund he founded, Soros Fund Management, earned an average annualized return of 33% from 1970 to 2020, making it the most successful hedge fund in history. Soros’s biggest single success came on September 16, 1992, when he ‘broke the Bank of England.’ He had taken a short position on the pound sterling, leveraged to $10 billion, and when the pound fell in response to changing politics, he personally made $1 billion in a single day. Soros hasn’t always been right in his financial calls, but he’s right more often than he’s wrong. He’s also well-known for his bon mots when it comes to talking about trading. “It’s not whether you’re right or wrong,” Soros has been quoted saying, “but how much money you make when you’re right and how much you lose when you’re wrong.” Bearing this in mind, we decided to look at Soros Fund Management’s recent activity for inspiration. Running three stocks the fund picked up during Q1 through TipRanks’ database, we found out that the analyst community is also on board, as each sports a “Strong Buy” consensus rating. Farfetch, Ltd. (FTCH) We’ll start with an online retail stock, Farfetch, a company specializing in the sale of luxury goods and brands. Farfetch is a truly international company, founded in Portugal, headquartered in London, and boasting offices in New York and LA, Tokyo and Shanghai, and Brazil. Like many tech-oriented companies, Farfetch has been running at a loss – but in Q1 of this year, the company made an abrupt turnaround to profitability. The 1Q21 earnings report showed an after-tax profit of $516.7 million, compared to a year-ago quarterly loss of $79.2 million. The company disclosed that this gross profit included a one-time $660 million non-cash benefit “arising from lower share price impact on items held at fair value and remeasurements.” Total revenues from operations was reported at $485 million, up 46% year-over-year, and higher than the $457 million analysts had expected. One key metric, the gross merchandise value of orders processed over the company’s platform, rose 49% year-over-year, to $915.6 million. Farfetch’s success grows from a strong user base. The company boasts more than 3 million active customers, and operations in 190 countries. Sellers on the platform have made available over 1,300 luxury brands. Even after a pullback in share value during the first half of 2021, the stock is still up an impressive 234% in the…
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