Category: Money tips Release Date: 2006-01-05
Chapter XII cheap to take, such as gems, such as dirt more expensive â—?â—?James Rogers II
James Rogers II was negligible in 1968 to 600 U.S. dollars in the stock market has grown. By 1973, he and George Soros (George Soros) a partner set up a "Quantum Fund," (Quantum Fund). The funds that later became the nation's best-performing fund one. In 1980, Rogers to accumulate a fortune, so, retires. His so-called "retirement" means the individual began to focus his efforts on a portfolio, as well as to a professor at Columbia University Business School, investment-related courses.
I was very much like to be able to visit Rogers. He was not only market transactions in the field of contemporary legend, but always through television and some print media, in order to inject new ideas and common sense to give a new interpretation.
Since I was not met with Rogers, so I wrote a letter to him, on the one hand, he accepted my interview request, on the one hand to explain to him, I was preparing a book about a book dealer, I am also comes with a letter He attached I have written a book about futures book. In the book I wrote a quote from a great French philosopher Voltaire (Voltaire)'s famous remark: "Common sense is not so common."
A few days later, Rogers called me to thank for the books to, and expressed willingness to be interviewed. But he also told me: "I may not be suitable for your interview, because I can say is the world's worst trader, I have always held a position not only as long as several years, and has never been elected to the admission time. "He thought I should interview the object is a wise trader, rather than a successful investor.
What I mean by traders, is the focus on the stock market trend of the person; investors is the focus on select stocks with profit potential of people. In other words, I mean investors are always long, but traders can do more and may also be shorting. I am on the phone to Rogers to explain how I distinguish between traders and investors, and to he stressed that he is the object I wish to interview.
Long hold the selected target profit
I was in an early spring afternoon arrived at Rogers's home. He was full of antique furnishings in the living room reception at me repeatedly stressed: "I still think you had misplaced."
The following is an explanation of Rogers, and why he does not think of themselves as traders reason, I was launched through his interpretation of this interview. As I said in the phone, I do not think he was a trader. I remember in 1982, West Germany bought the stock, I was manager, said: "I want you for me to buy A, B, C three shares." Broker between the me: "what to do next?" I said, : "As long as buying the shares, and then tell me whether the deal on the line." He asked me: "Do you want me to send you some analysis?" I replied: "Please Do not." He asked me: "Do you Shall I send some references? "I replied:" Oh, do not have to. "He asked:" Shall I tell you bid? "I said:" Do not even sold all Do not tell me. If you tell the I am sold, I just see the stock up two or three times, you may want to sell the stock. I really wish to hold a long stock for at least three years, West Germany, West Germany, the stock market because I think there will be two or three decades only see the bull market. "Predictably, the broker was speechless, I was right, he thought I was simply crazy. Incidentally, my prediction turned out to be correct, West Germany, I bought the stock by the end of 1982, and later in 1985 and early 1986 to sell in batches.
Q: Why did you have confidence in West German stock market is?
A: I was in West Germany by the end of 1982 to buy the stock, however, the stock market as early as West Germany in that year into the bull market began in August. However, more importantly, the West German stock market since 1961, there is no excessive head market. From 1961 to 1982, 21 years, the West German economy continues to flourish. So, basically, West Germany already has involved the value of the stock market. Whether to buy or sell, I would always be sure they will not lose money. As long as the sale of the subject does have its value, even if I judge wrong, it will not loss too much.
Q: But according to this theory, you may be as early as 10 years into the West German stock market.
A: Yes. You may be because I hold the same view, while in West Germany in 1971, buying the stock, and then just sit and walk most of the first market. But the other hand, West German stock market was indeed possess a catalytic factor in the stock market. Formation of any major things happen, you always need catalysis. At that time, West Germany, West Germany, the stock market is the catalyst for the general election. I can predict that the then ruling Socialist Party, the Christian Democratic Party will be defeated opposition date. I also know that the Christian Democratic Party had prepared a set of stimulating business investment plans.
My idea is that if the conservative Christian Democrats, after years of defeat, the end to win the election victory, they will engage in some important economic reforms. I also found that many enterprises have predicted West Germany, the Christian Democratic Party will win the election, so were suspended in 1982, capital and equipment investment. View of this, if the Christian Democrats really won the election, the enterprise's capital investment will inevitably showed a substantial expansion.
Q: The result?
A: The Christian Democratic Party won the general election results in the day, West Germany, the stock market surged on the warning.
Q: If the Christian Democrats lost out?
A: I said before, the reason I enter the West German stock market because it is already a considerable value. According to this reason, I believe I will not loss.
