Jim Rogers. Podsuetis ... and make state

Jim Rogers. Podsuetis ... and make state

Jim Rogers made his first million, being the partner of George Soros, and then, when I worked independently to increase their capital. He grew up in a small secluded town of Demopolis, Alabama, where he began to earn money first at the age of five years, collecting bottles after the baseball games. In the soul of a capitalist, he was not sure what to do in life. So after graduating from Yale University in 3964, he decided to work in the summer at a firmengaged in securities, and then go to Oxford in the autumn and begin to explore the economic, philosophical, and political science. After Oxford and a brief military service, he returned to the investment. He once said: "What I liked in this case, it is not so much investing money, because at that time I did not have them, but what if you were smart, you had to use on their mental abilities and closely monitor events in the world, and it vce ".

Rogers, who became well-known international investor, likes to put no stock in several companies, and the entire country that he, unlike most other people, according to the most affluent. For example, in the mid-80s, he began investing in Portugal after the overthrow of the communist government - against the advice of a Portuguese investment firm. Rogers bought up the shares of all 24 companies listed on the Stock Exchange in Lisbon, and tore a big winner. Part of his success is due to finding ways to invest in a country where little or no financial institutions, serving investors. When Rogers became interested in investing money in Brazil, a spokesman for the local stock exchange had told him that foreigners are the only way - is the black market. Rogers asked where the black market, and clerk replied that it was he is.

In 3990, the Rogers and his girlfriend went round the world trip on a motorcycle. Over the next 22 months they traveled 65.067 miles, setting a world record. When Rogers came back, people asked him how he felt the United States, Ero response: "I hate to say this, because this is my home, but I see America in a clearly unsatisfactory. He believes that we are still too isolated from the rest of the world and do not want to deal with their economic problems. In the essay "Podsuetis ... and make state, "Rogers explains why it is important to pay attention and listen to what others say, especially in the media, in determining the optimal time of purchase and sale of bumag.V 1980 price per barrel of oil has increased alarmingly, and each filling stations in the United States, fumed in long lines frustrated motorists every day articles appear in newspapers, mourning the continuing shortage of nonrenewable fuels, and everyone knows an expert on Wall Street and in the academic field was confident that oil prices should rise from 40 to 100 dollars.

Interest rates have risen to dangerous levels, and investors were in panic because of high inflation and unrest among the workers. There was a feeling that the U.S. position as a world power weakened and shortage of goods of all kinds has become a matter of constant, even in all the world is coming to an end.

Indeed, some time in 70 years, oil demand exceeded supply. But with the rise in prices has come an inevitable increase in production. More has been drilling rigs, more money was spent in the Gulf of Mexico wells, the North Sea and South America and more young people decide to become a professional study of geology. But by the mid-80s out of the oil market was broken ground, and there was a collapse in prices.

The iron law of supply and demand continued to operate even in 1980, which was expected on the basis of health-. Vaga sense. If some headings have to sell more than buyers, the price goes down, if less, the price goes up. Possible time delay. But the law always works this way,

Smart investor learns to listen to the popular press your ear tuned to a wave of panic. At the top markets melody would sound something like "This time it will not be like last time. The trees will grow and grow and grow. Buy a tree and see how it will reach a height of 50 feet, 100 feet in 1000 feet. This is an investment into which you can invest the money and forget to think about it. "

At the base of the song becomes a funeral march. Prices severely underestimated. Any company with at least the rudiments of common sense out of this market. He (the market) is just a bad future. In the description of such markets would be words like "catastrophe", "doomed" and "dead" and alert the investor clearly hear them without any tips, draws out a newsletter or a telephone call from his stockbroker.

This is an old story. Today, newspaper articles trumpeting the stock market as an ideal place where you can multiply the assets in the long run. Indeed, the Dow is now just a figure exceeded 6,000. But 15 - 20 years ago when it was below 1000, the magazine "Business Week" was released with a cover, which proclaimed, "Stocks are dead".

(Some investors argue that they can make money by following the opposite course, proclaimed on the cover of "Business uika": they are selling, when the magazine announced something suitable for investment, and buy, when to cover something declared moribund.)

In all markets demand and supply continuously lowered and raised, rushing from one extreme to another. Investor with a regular hearing and sight there waiting for the state.

Is it easy is that? No. Does this effort? Yes.

How, then, should determine when to buy and sell? It's hard. Note, however, that all the big grounds are the same - on wheat market, the stock market or real estate market - and the same is true for the vertices.

Choose any top or bottom, which had previously been, anywhere, at any time, from the beginning to the present day. When you learn them, you'll be amazed convinced the confidence of all participants - at the extreme top and extreme bottom.

Also, pay attention to who comes in and goes out of business. The bases of many who were in business a long, long time, will be released in batches, or "diversify

On the tops of the market in droves climb those who have little or no experience.

A classic example is in the midst of the oil boom, "Yu Es Steel" in order to diversify bought "Marathon Oil", but she should stick to business, which she knew, and buy steel mini-mills. As it turned out, they continued to reliably make a profit, even when oil prices fell.

As another example, remember all those farmers and workers rvanuvshihsya west in the era of gold fever? In those early times of the vertices of the stock market, many doctors and dentists often threw his practice to join the financial community,

At the top of the boom in hotel construction in China 80 years professor threw safe operation of the university and became the corridor. Wages in tourism was much better, and the future seemed in a much more rosy.

The really astute investor knows how to listen to gloomy moods and disastrous at the bottom of the market, listen to the excitation at the tip and question something, and more. By this is not required for secret knowledge, or an MBA or some sort of mystical skills.

Read newspapers, watch television news - and think. You do not need to be a financial genius to understand when in the 80s, farmers were the U.S. on the brink of ruin, and singer Willie Nelson conducted concerts of "Farm Aid" to raise money for them, at that time formed a definite basis of the market.

It also helps to know the history of public markets, especially since the library full of books about their ups and downs, but this is exactly what depends on the psychology of crowds. In other words, the tops and bottoms - a product of extreme situations. They rise above any reasonable expectations and hang out there, and they fall below that level, which offers common sense.

Intelligent Investor does not feel the financial genius, and practicing, analyzing the newspapers and television and picking tops and bottoms of extreme values ??of the mood of the public learns to fly, when the reigning fear and panic, and sell when greed and hysteria reigns.