André Kostolany (February 9, 1906 – September 14, 1999) was a

stock market A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include ''securities'' listed on a public stock exchange, as ...

expert, bon vivant and Chevalier de la Légion d'Honneur. He worked most of his life in

France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...

and

Germany Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...

Biography

Kostolany was born in

Budapest Budapest (, ; ) is the capital and most populous city of Hungary. It is the ninth-largest city in the European Union by population within city limits and the second-largest city on the Danube river; the city has an estimated population ...

, a Hungarian

Roman Catholic Roman or Romans most often refers to: *Rome, the capital city of Italy *Ancient Rome, Roman civilization from 8th century BC to 5th century AD *Roman people, the people of ancient Rome *'' Epistle to the Romans'', shortened to ''Romans'', a lette ...

Jewish Jews ( he, יְהוּדִים, , ) or Jewish people are an ethnoreligious group and nation originating from the Israelites Israelite origins and kingdom: "The first act in the long drama of Jewish history is the age of the Israelites""The ...

descent. He originally studied

Philosophy Philosophy (from , ) is the systematized study of general and fundamental questions, such as those about existence, reason, knowledge, values, mind, and language. Such questions are often posed as problems to be studied or resolved. Some ...

and

History of Art The history of art focuses on objects made by humans for any number of spiritual, narrative, philosophical, symbolic, conceptual, documentary, decorative, and even functional and other purposes, but with a primary emphasis on its aesthetic vis ...

in Budapest but his father forced him to abandon his studies and sent him to

Paris Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...

in 1924, to work as a

stockbroker A stockbroker is a regulated broker, broker-dealer, or registered investment adviser (in the United States) who may provide financial advisory and investment management services and execute transactions such as the purchase or sale of stocks an ...

. There he began his career as a speculator and

arbitrage In economics and finance, arbitrage (, ) is the practice of taking advantage of a difference in prices in two or more markets; striking a combination of matching deals to capitalise on the difference, the profit being the difference between the ...

ur. He was able to make a profit during the decline in market prices which began at the end of 1929, having been

bearish Market sentiment, also known as investor attention, is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including p ...

at the time. When the

Germans , native_name_lang = de , region1 = , pop1 = 72,650,269 , region2 = , pop2 = 534,000 , region3 = , pop3 = 157,000 3,322,405 , region4 = , pop4 = ...

occupied

in 1940, he fled to

New York New York most commonly refers to: * New York City, the most populous city in the United States, located in the state of New York * New York (state), a state in the northeastern United States New York may also refer to: Film and television * '' ...

. From 1941 to 1950, he was the general director and president of the ''G. Ballai and Co Financing Company''. From 1950 he lived mainly in

, with an office in

Munich Munich ( ; german: München ; bar, Minga ) is the capital and most populous city of the States of Germany, German state of Bavaria. With a population of 1,558,395 inhabitants as of 31 July 2020, it is the List of cities in Germany by popu ...

and a vacation home on the

Côte d’Azur The French Riviera (known in French as the ; oc, Còsta d'Azur ; literal translation " Azure Coast") is the Mediterranean coastline of the southeast corner of France. There is no official boundary, but it is usually considered to extend fro ...

. After

World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...

, he invested heavily in the

reconstruction Reconstruction may refer to: Politics, history, and sociology *Reconstruction (law), the transfer of a company's (or several companies') business to a new company *''Perestroika'' (Russian for "reconstruction"), a late 20th century Soviet Union ...

of Germany, The subsequent

economic boom An economic expansion is an increase in the level of economic activity, and of the goods and services available. It is a period of economic growth as measured by a rise in real GDP. The explanation of fluctuations in aggregate economic activity ...

helped him build up his fortune. In return, Kostolany spent most of his later life writing columns and holding seminars about the stock market in Germany, where he became famous as a stock market expert. His fame was founded in the vast amount of practical experience he had accumulated during his 70-year career, in different trades, in many markets around the world. He died in Paris at the age of 93.

His beliefs

Kostolany, spurred by his successful investment in Germany after World War II, held a deep respect for “the inherent qualities and capabilities of the German people”, which, according to him, would consequently lead Germany to a new

(see ''

Wirtschaftswunder The ''Wirtschaftswunder'' (, "economic miracle"), also known as the Miracle on the Rhine, was the rapid reconstruction and development of the economies of West Germany and Austria after World War II (adopting an ordoliberalism-based social marke ...

''), after the German economy absorbed the shock of

reunification A political union is a type of political entity which is composed of, or created from, smaller polities, or the process which achieves this. These smaller polities are usually called federated states and federal territories in a federal governmen ...

. Kostolany was a critic of the

gold standard A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. The gold standard was the basis for the international monetary system from the 1870s to the early 1920s, and from the la ...

, the monetary system that fixes

exchange rate In finance, an exchange rate is the rate at which one currency will be exchanged for another currency. Currencies are most commonly national currencies, but may be sub-national as in the case of Hong Kong or supra-national as in the case of ...

s to the price of

gold Gold is a chemical element with the symbol Au (from la, aurum) and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile met ...

, since he believed that whenever it was used, it suppressed economic growth and led to cyclical crises. Consequently, he was a very vocal critic of the monetary policy of the

Bundesbank The Deutsche Bundesbank (), literally "German Federal Bank", is the central bank of the Federal Republic of Germany and as such part of the European System of Central Banks (ESCB). Due to its strength and former size, the Bundesbank is the most ...

during the 1980s and 1990s.

Published works

Kostolany published a lot of books in various languages, including 13 books that sold more than 3 million copies in total. He was for many years the author of a column in the monthly ''

Capital Capital may refer to: Common uses * Capital city, a municipality of primary status ** List of national capital cities * Capital letter, an upper-case letter Economics and social sciences * Capital (economics), the durable produced goods used f ...

'', a stock market related magazine in Germany (he wrote a total of 414 articles). Some of his works (in their original titles) are: * ' – French (1939) * ' – French – ' – German (1957) * ' – French (1959) * ' – French (1960) * ' – French (1973) * ' – German (1987) * ' – German (1991) * ' – German (1995) * ' – German (1996) * ' – German (2000)

References

External links

a Portrait of André Kostolany

* ttps://web.archive.org/web/20100116122433/http://stockpunkt.com/2008/02/20/fotokiste-andre-kostolany André Kostolany as author {{DEFAULTSORT:Kostolany, Andre 1906 births 1999 deaths Hungarian money managers Hungarian people of Jewish descent Hungarian Roman Catholics Science journalists Stockbrokers 20th-century Hungarian economists Ritchie Boys