A lesson from Stan Druckenmiller: position sizes really matter

The size of each of your investments determines how much you make when you’re right and how much you lose when you’re wrong, says investment guru Stanley Druckenmiller. Dominic Frisby explains how that’s influenced his own investments, and highlights what he’s betting on now.

Stanley Druckenmiller
Stanley Druckenmiller: size matters
(Image credit: © Victor J. Blue/Bloomberg via Getty Images)

I can’t stop thinking about an interview with Stanley Druckenmiller from the Sohn 2022 conference, which has been doing the rounds on the internet this last week.

If you don’t know Druckenmiller, he is a legend in US investing. He worked with George Soros for many years, 12 of them as lead portfolio manager of Soros’s Quantum Fund. He spearheaded the infamous “Black Wednesday” raid on the pound in 1992 that forced the UK out of the European exchange rate mechanism (ERM). His own fund’s performance over many decades, year-in, year-out, is almost without equal.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Explore More
Dominic Frisby

Dominic Frisby (“mercurially witty” – the Spectator) is as far as we know the world’s only financial writer and comedian. He is the author of the popular newsletter the Flying Frisby and is MoneyWeek’s main commentator on gold, commodities, currencies and cryptocurrencies. He has also taken several of his shows to the Edinburgh Festival Fringe.

His books are Daylight Robbery - How Tax Changed our Past and Will Shape our Future; Bitcoin: the Future of Money? and Life After the State - Why We Don't Need Government

Dominic was educated at St Paul's School, Manchester University and the Webber-Douglas Academy Of Dramatic Art. You can follow him on X @dominicfrisby