Jim Rogers Blog

Monday, May 30, 2016

Agriculture sector is the way of the future

Buy some land and become a farmer if you like the outdoors. Otherwise you can lease it to a farmer. Make sure you buy land where it is going to rain and that you lease it to a competent farmer, otherwise you will suffer.

There are many ways. You can invest in seed companies, or you can become a tractor salesman, or set up restaurants for the farmers because they will have a lot more money down the road. Buy yourself a second home by a lake in the farm belt, in the places where the farmers are going to be.

There are many ways to participate and to get involved – to hedge if you will. Becoming a stockbroker is not the best way. Farming is the way of the future. But don’t do it unless you like it. If you don’t like it you will find out it’s a lot of hard work and will go broke, like many other farmers. Certainly many have gone broke, committed suicide and so forth over the last 30 years.

Instead you can become a journalist covering the farming sector. Depends on what your skills and interests are. As you look at your life, figure out a way to orient it towards agriculture. If you want to sell, sell something to the farmers.

Thursday, May 26, 2016

Do your own research on a Investment before investing

I first invested in China back in 1999 and then again in 2005. The market at those times was very, very bad. I invested again in November of 2008, when all markets around the world were collapsing, including in China.

So I have certainly made investments in countries with crisis markets, and I'm getting a little better at it than I used to be, because I have had more experience now. That's why I keep emphasizing that you have to know what you're doing. And by that I mean paying attention to and doing your homework on a stock or a commodity or a country. If you do that with a crisis market, then chances are you can move in and make some money.



North Korea 
It's illegal for Americans to invest in North Korea. It's probably illegal for us to even say the word "North Korea". I look around to see which countries are hated. In North Korea there is no stock market, and there is no way to invest, especially if you are an American, but sometimes you can find something in a secondary market.

Stamps and coins were the only ways I knew of that one could get some sort of exposure. This is because you are not investing in the country, obviously, because you are buying them in a secondary or tertiary market. That said, I think the US government is going to make owning stamps illegal too.

There were people once upon a time—and maybe even now—who invested in North Korean debt. I have not done that, but it may be another way that people can invest in North Korea. I don't even know if North Korean debt still trades, but it was defaulted on at some point.


Wednesday, May 25, 2016

Prices bottom when there is no one else selling

Certainly commodities at the end of the '90s were everybody's favorite disaster, and yet, for whatever reason, I had decided that it was not a disaster. In fact, it was a great opportunity and there were plenty of things to buy. In 1998, for instance, Merrill Lynch—which at the time was the largest broker, certainly in America and maybe the world—decided to close their commodity business, which they had for a long time. I bought. That's when I started in the commodity business in a fairly big way. 

Everybody had more or less abandoned or were in the process of abandoning commodities, and yet, that's when I decided to go into commodities in a big way, because of what I considered fundamental reasons for doing it, but the fact that Merrill Lynch was getting out buttressed in my own mind anyway that I must be right, because, you know, everybody was out. Who was left to sell? There was nobody left to sell at that point.


Tuesday, May 24, 2016

Contrarian investing - Short term vs long term

There are two aspects of it. One is being a trader, being able to buy panic, and nearly always if you are a trader or an investor, if you buy panic, you are going to do okay.

Sometimes it is better for the traders, because when there is a panic—a war breaks out or something like that—everything collapses, and some people are very good at jumping in and buying. Then, when the rally comes, the next day or the next month, they sell out.

Now, the people who are investors can also do that, but it usually takes longer for there to be a permanent rally. In other words, if there's a war and stocks go from 100 to 30 and everybody jumps in, it may rally up to 50, and then the traders will get out, it may go back to 30 again. I'm trying to make the differentiation between investors and traders buying panic.

As an investor, nearly always if you buy panic and you know what you are doing, and then hold on for a number of years, you are going to make a lot of money.

You also have to be sure that your crisis or panic is not the end of the world, though. If war breaks out, you have got to make sure it's a temporary war.

I used to work with Roy Neuberger, who was one of the great traders of all time, and whenever stocks would panic down, he was usually one of the few buyers, because he knew he could get a rally—if not that day, at least maybe that week or that month. And he nearly always did. No matter how bad the news, especially if there's a huge drop, it's probably a good time to buy if you've got the staying power and your wits, because you will likely get a rally. In terms of panic buying or crisis situations, that's normally the way to play.

Now, it's not always easy, because you are having everybody you know, or everybody in the media, shrieking what a fool you are to even try something like that. But if you have your wits about you and you know what you are doing, and you know enough about yourself, then chances are you will make a lot of money.

Monday, May 23, 2016

Philosophy and Psychology are very important traits for a successful investor

If one wants to be successful in the markets, then skip the degree in finance and instead pursue philosophy, psychology and history: philosophy teaches you how to think, psychology is the one thing you can count on to be irrational in the markets, and history doesn’t repeat itself but it rhymes.





Jim Rogers co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.

Wednesday, May 18, 2016

Modi was one of India's best chances to bring positive reforms

I am not happy the way the government has delivered in the past two years in office. I expected economic reforms, and changes, which has not happened. And if Modi cannot bring changes then who is going to bring reforms in this country.



Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.