Lessons from the Investing Guru Jim Rogers

Investopaper

Jim Rogers is one the revered investment gurus of all time. He was the co-founder of Quantum Fund and Soros Fund Management. Working with Geroge Soros, Rogers acheived a 4200% gain in a period of 10 years while S & P generated mere 47 % return. Rogers is a global investor and financial commentator.

Here are some of the lessons from the legendary guru of investing Jim Rogers.

Lessons From Jim Rogers

Following what everyone else is doing is rarely a way to get rich.


Many investors seem to have forgotten a hard reality-There are frequent periods when stock markets don’t do much.


Never act upon wishful thinking. Act without checking the facts, and chances are that you will be swept away along with the mob.


Diversification is something that stock brokers came up with to protect themselves, so they wouldn’t get sued for making bad investment choices for clients. Henry Ford never diversified, Bill Gates didn’t diversify. The way to get rich is to put your eggs in one basket, but watch that basket very carefully. And make sure you have the right basket.


The last leg of a bull market always ends in hysteria; the last leg of a bear market always ends in panic.


The price of a commodity will never go to zero. When you invest in commodities futures, you’re not buying a piece of paper that says you own an intangible piece of company that can go bankrupt.


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.


The first loss is the best loss.


Get inside information from the president and you will probably lose half of your money. If you get it from the chairman of the board, you will lose all of it.


I cannot invest the way I want the world to be. I have to invest the way the world is.


Bottoms in the investment world don’t end with four-year lows. They end with 10 or 15-year lows.


I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime.


Buy low and sell high. It’s pretty simple. The problem is knowing what’s low and what’s high.


Lady Luck smiles on those who continue their efforts.


There is no such thing as a paper loss. A paper loss is a very real loss.


The biggest public fallacy is that the market is always right. The market is nearly always wrong. I can assure you of that.


Nearly every time I strayed from the herd, I’ve made a lot of money. Wandering away from the action is the way to find the new action.


One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do. Most people, not that I’m better than most people , always have to be playing. They always have to be doing something. They make a big play and say, “Boy, am I smart, I just tripled my money.” Then they rush out and have to do something else with that money. They can’t just sit there and wait for something new to develop.


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