Not all businessmen write a book for their children. Moreover, even if they do so, I haven’t come across something as brief and succinct as ‘A Gift to My Children’. The moment I heard of such a book by Jim Rogers, I wanted to read it myself.
Of all the modern investors I know, Jim Rogers is special because of his unorthodox style of doing it. He is straightforward and practical, he is confident in his statements and candor in his approach. For example, he loves to work hard…really hard. And he keeps himself innovative and believes in being a “world citizen”.
One of the opening thoughts he share’s is to take our own plunge into the world or living: It is important to decide for yourself what’s important to you and what you want before you turn to others. “Swim your own races: Do not Let Others Do Your Thinking for you”, he says. His skepticism to depend on others is reflected throughout the writings. For a self-made man, I think it is an apt attitude. He goes on to tell the importance of being a self-starter. He picked empty soda bottles from the streets and made money from it at the age of six.
The fundamental style by which this investor operates is by cutting across social barriers, political barriers and geographical barriers. He believes in going where his money works best. Unlike his countrymen who are poor travellers, Jim loves to go across the world all on his own; he enjoys seeing the cultural and moral life of others.
Where should a person start in order to be successful? The answer is easy: Try as many things as you can, then pursue the one (or two or three) about which you’re passionate. People who follow their passions do not “go to work.”
The one message that strikes out from Jim is to live a life with a dream. I believe, most of us cannot start with a dream. At 45, I keep guessing what my real dreams are! Here I can find the difference between a self-made investor and me. Once a short dream is achieved, I must pitch for a new dream. True, when we take off with a dream, we may not be 100% clear about the path and the people. Nevertheless, as we pull on, the dream will keep getting clearer and clearer.
Don’t neglect the bear : What is it that most investors fail to consider? Most look for the bull and neglect the bear. Buying the bear in a bull market is the mark of Jim.
History: I never knew that history could be signal in the capital market. History can show any careful eyes how to anticipate future changes. Jim says that history can be an invaluable tool to learn how to analyze trends. Today, based on Jim’s writing, I am looking at an exciting changing that is taking shape in the Arab world: the Arab Spring.
A habit of this super-investor is very interesting: he always wants to know the pulse of any business at the grassroots of the market. He writes about the way he investigates: just by asking an average person how things are getting on…just by going to a Sunday market and observing how the merchandise was sold. Is there a black market? Is there illegal hoarding to shore up the prices? Who good is the regulatory system of the land? How hard working is the people? He could figure out an answer for all these trivial investment questions from the common masses he mingled. Without doing this homework, Jim wouldn’t put his money to work.
Jim gives space in his writings for his famous observation : “Common sense is not so common” ( a quotation from Voltaire). And then something more interesting: “If everyone is thinking the same thing, someone is not thinking” (George Patton, the US general). A simple fact that one cannot observe the obvious is a parody of life. In the investment world this is so true. Most investors cannot work out commonsense judgment about demand and supply. Most investors cannot look towards future and tell oneself the growth requirements of the very society they live in. This is the area where Jim Rogers is the strongest. For example, in India, it is easy to understand that there will be a huge demand for living spaces in large cities by 2020. As India’s rural population flood these cities, the demand for living spaces will be most acute. Hence, investments in living spaces in large cities will make sense. I think Jim Rogers would OK my thinking.
On book learning: Jim is a bit allergic to sterile academic learning. He speaks about the importance of learning through observing life and attitudes of people and society. No amount of book learning can bring in the information one gets from this kind of field experience. He writes: Let the world be a part of your perspective. He quotes Rudyard Kipling’ “The English Flag”:
Winds of the World, give answer! They are whimpering to and fro —
And what should they know of England who only England know?
Again, He says,
“People who can observe events as they unfold will certainly acquire wealth. After touring the world from 1990 to 1992, I wrote my first book , Investment Biker. Recently a reporter remarked to me how many of the predictions I made in that book had come true, such as the rise of nationalism and militant Islam, “How was I able to foresee the future?” he wanted to know. I simply did what an experienced investor did: I read the news”.
This book is a gist of brilliant investment ideas crystallized in the life time of a wonderful investor.Among all the investment related writings I have read, ‘A Gift To My Children’ remains gem of a writing. Having posted only 30% of Jim’s thoughts in this blog, I will love to reread the book here and there.
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Season Books 