More Epiphanies from George Soros

The same principles [in philanthropy] apply to running a business. You have to be efficient, you have to be businesslike. However, if you try to look for a simple criterion, youre liable to be misled. A lot of entrepreneurial philanthropists fall into this trap. They want to have a specific measure for their accomplishment and that leads them astray.

The worst [business decision Ive made] is easy. [In 1997,] I made a large investment in Svyazinvest, a Russian telephone holding company that was being auctioned. I thought that this auction would be the transition from totally rigged auctions to something more legitimate. But the oligarchs were just fighting each other. The situation deteriorated and the investment lost a large part of its value. I expected that there would be a transition from robber capitalism to more legitimate capitalism, in which investment in Russia would be rewarded. But the robbers just fell out among themselves.

DIMITAR DILKOFF/AFP/Getty Images

Sometimes, I pushed things to the limit. There was a time when I had a very large position in British government bonds and the market went against me. And my position was so large that if I tried to liquidate it, I would have caused a market panic. And therefore it would have cost me more. The damage would have been even greater. I was skating pretty close [to losing my fortune].

When [George W. Bush] said that those who dont support [his] policies are supporting the terrorists, it unfortunately reminded me of the propaganda of the Nazis and the Communist regimes. And thats what I really felt was a very dangerous position to take. Its totally contrary to my concept of open society and critical thinking.

I dont think Id be able to convert [Bush]. And, in any case, I consider Cheney a much more dangerous character than the president himself.

There is a long-term function for the Open Society Foundation network to support civil society in holding governments accountable. Its too controversial to attract most philanthropists. That is a niche that my foundation can fill.

[On Election Night 2004,] I actually gave a party for people who had supported the campaign against [Bushs] reelection. And we thought until past midnight that the vote in Ohio would go against Bush and not for him. So, we were mistaken.

I took [an anti-Bush] stance [in 2004] because I could bear the attacks. I considered it a privilege that I was in a position to be assailed by a concerted campaign because I was not dependent on clients or suppliers. I was in a much better position than many businessmen in finance. It was an inducement for me to take that stance because many other people couldnt do it.

George Soros is founder of the Open Society Institute and author of The Age of Fallibility: The Consequences of the War on Terror (New York: Public Affairs, 2006).

For the original Epiphanies interview that appeared in the November/December 2007 issue of FP, click here.
For additional Web extras from the November/December 2007 issue of FP, click here.