Best Quote: When you see several major companies losing money and capital expenditure coming to a stop, then look for an Industry recovery!
Known as the “poor boy from Alabama ” Jim Rogers is known more for his post retirement activities then for what he did at work. During his working tenure he never took a vacation for a continuous stretch of 10 years, He believed that history and philosophy taught you more about the markets. This he thought was better then going to business schools.. In 1970 he co-founded the Quantum fund with George Soros. At that time there were just two of them Soros the trader, Rogers the research analyst and a secretary. During their partnership tenure of 31 st December 1969 to 31 st December 1980 this fund chalked up a total return of 3365%
Starting out in his twenties with an initial capital of $600 Rogers retired at age 37 with more money than anyone could possibly spend. His book, Adventure Capitalist - The Ultimate Investor's Road Trip, is the story of his drive through 116 countries over a three-year span from 2000-2003. A few of his conclusions: Thumbs down on investing in Russia and India , regardless of natural resources or technology skills. Thumbs up on China, Uruguay, Mongolia and… Tanzania ?
What to look for before buying into a country?
What to look for before buying into a Company?
Rogers considers commodity to be the next big thing and he has been proved extraordinarily correct in his forecasts till now. He is bullish on:
Crude Oil: Economic development in China and India will create a demand for manufacturing activities - this would in turn increase the demand for newer cars, trucks, and consequently crude. Rogers opines that the per capita consumption of crude in these two countries is just 5% of that of the U.S. Rogers expects crude to sail well above $100 at the end of the decade.
Sugar & Coffee : The majority of population in India and China would experience rising incomes with economic growth. This would increase the demand for sugar and tea.
Lead: The growth of cars in the newer economies would create a huge demand for lead as it is used directly in the production of batteries.
Other commodities where Jim is bullish on are Tin, Zinc Corn and Soya bean.