Jime Roger's

Message

   I am presently reading a book from the author in the title. What amazes me is that the more in looked into his investment style more stark resemblance is visible to value investing. Whatever i understood are penned down below:

1) Always buy cheap - It means buy some asset when its in dirt, when 
you see it has a great future ahead but people are not recognizing. Jim's investment mantra is to buy commodities as they are always 
saleable unlike technology or sector specific stock. Jim explains that when people were crazy mood to invest in Tech stocks (dotcom) then commodity was desrted, even news from Meryyl Lynch that they are planning to get rid of commodity was a souding a sweet chiming bell to his ears!

2) Hold long term - One needs a patience to earn the money, it's not possible to becoms rich overnight. Assets take time to materialize. He cited that commodites are bit cyclical and takes time to shoot.

3) Develop a vision for investment - Merely looking at ratios are not enough, instead you need to understand the business thoroughly, its cycles, risk factors etc.  For example, Jim sees a good future of coffee - he thinks that if somehow MNCs lures the India & China for drinking more coffee then we have billions of consumers !!! 

PS: From various posts its clear that legendary (may not be now but has the potential to be in future ) indian investor Mr Basant is very much follower of above point .

All said above sounds simple but needs a lot of hard work. Investor needs to wait for right opportunity and most important & difficult is knowing that whats an opportunity in itself !! Identifying the opportunity only comes from lots of study and knowledge.

It's a dream for every investor to be like Jim. Jim has retired at the age of 37 and he took the world tour and i guess having all the luxaries one can dream off. 

Happy investing!