Jim Rogers On Investing
Last Friday, the transcript of a recent Financial Times (UK) interview with legendary investor Jim Rogers appeared on FT.com. The former partner of George Soros talked about a number of issues, including investing. The following are notable excerpts from the exchange:
What is the secret of your success?
As I was not smarter than most people, I was willing to work harder than most. I was prepared to examine conventional wisdom. If everyone thinks one way, it is likely to be wrong. If you can figure out that it is wrong, you are likely to make a lot of money.
What is your basic investment strategy?
Buy low and sell high. I try to find something that is very cheap, where a positive change is taking place. Then I do enough homework to make sure I am right. It has got to be cheap so that, if I am wrong, I don’t lose much money.
Every time I make a mistake, it is usually because I did not do enough homework.
Do not underestimate the value of due diligence. In the 1960s, General Motors was the world’s most successful company. One day, a GM analyst went to the board of directors with the message: “The Japanese are coming.”
They ignored him. Investors who did their homework sold their GM stock – and bought Toyota instead.
I’m not buying any stocks at the moment. If anything is undervalued now it is commodities and some currencies…
Picasso or Art Deco as an investment?
I am at a stage where I am not interested in having or amassing stuff…
Where should people put their money in the recession?
Invest only in things you know something about. The mistake most people make is that they listen to hot tips, or act on something they read in magazines.
Most people know a lot about something, so they should just stick to what they know and buy an investment in that area. That is how you get rich.
You don’t get rich investing in things you know nothing about.
Source:
“Jim Rogers: My First Million”
Financial Times (UK), November 20, 2009
