What Jim Rogers Is Investing In These Days
With all the turmoil going on in the financial markets these days, how is legendary investor Jim Rogers playing his cards? From India’s NDTV this past weekend:
NDTV: Will you buy when there’s blood on the street?
Jim Rogers: If the US and other world stock markets did have a selling climate then I would go for it.
NDTV: But what will you buy in terms of equity asset class?
Jim Rogers: Well, it depends on what goes down the most. I would probably buy stocks of airlines, water treatment, agriculture, and other recession proof companies. The way you are going to get rich in the side market is define by the companies that come through hard times with good results. Those are the companies when you have next bull market that you make a fortune.
The Globe And Mail’s (Canada) Brian Milner also talked about Rogers’ recommendations last Friday:
As for his own investing strategy in these tumultuous times, Mr. Rogers said he is “mainly watching” and recommends that other investors do the same.
But that doesn’t mean he’s sitting on his cash.
Recently, he has been adding more agricultural products, has resumed selectively buying Chinese stocks, invested in the Japanese yen and Swiss franc (he likes the Canadian dollar, too, but doesn’t own it) and shorted the long U.S. government bond. He has also bought some Asian and European airline stocks, as well as Canada’s WestJet Airlines Ltd.
2,000 Yen Banknote
Finally, Peter Koven of the Financial Post (Canada) wrote that same day about whether or not the Singapore-based investor believed the commodities’ boom was still alive:
Mr. Rogers, who famously spent three years driving around the world, argued that most people still “don’t know anything” about commodities despite the boom of the last five years (even saying that less than 100 of the world’s 70,000 mutual funds are focused on them). He pointed out that other resource booms have lasted 15 to 23 years, and there is no reason to think this one will be any different. He figures it could run to around 2018 or 2020.
Of course, the main reason he cited is China. He said the 21st century belongs to the Chinese the way the 20th belonged to America, and practically pleaded with the audience to teach their kids Mandarin. He added that three billion people in Asia want to live like we do, and this will continue to constrain supplies well into the future.
Source:
“Commodity bull run not over yet: Jim Rogers”
NDTV (India), October 4, 2008
“U.S. bailout ‘welfare for the rich’”
Brian Milner
Globe And Mail (Canada), October 3, 2008
“Jim Rogers: Commodities have another decade or longer to run”
Peter Koven
Financial Post (Canada), October 3, 2008
