Daily Management Review

Jim Rogers: "I love to invest in stagnating markets, and Russia is №1 for me»


Legendary investor during the conference, held on April 6 at the Moscow Stock Exchange with the support of BCS Financial Group, told of where, in his opinion, interesting investment ideas may be put to.

- Russia is the best stagnating market in 2015. When the economy starts to grow, it will become incredibly attractive, - said the eminent financier. According to Rogers, Russia has huge resources - natural, human and financial, as well as attractive convertible currency. In addition, the country has no such a large public debt as the United States have. Interestingly, the special attention was paid to agriculture: in particular, he is actively investing in "FosAgro", the Board of Directors of which he entered last year. In addition, in Russia, Rogers owns shares of the Moscow Stock Exchange and the "Aeroflot".
- I am often asked, how you, dear capitalist, can hold shares in the country where Lenin and Stalin were born? - said the investor with a laugh. - Nevertheless, Russia is one of the largest markets of mine, and I plan to expand it.

Rogers also spoke about other countries promising in terms of investment. The main direction does not come as a surprise - this is China.
- The 19th century was the century of the UK, the 20th century - the century of the US, and the 21st century will be the century of China, whether you like it or not, - said the investor.
- The best advice I can give today to anyone else - is to teach your children and grandchildren the Chinese language. And, he matches words with deeds: his two daughters, now living in Singapore, speak fluent Chinese. According to the investor, investment in China is now about 35% of the profits, while in the US - only 2%. However, the key principle that makes the country so attractive - the notion that the market is wiser than the government.
- I wish America and Europe just believe in that too, - said Rogers. As for the interesting sectors of China, here he focuses on investor plans of the Chinese government, which in 2013 identified the sectors of the economy forth ground for development, in particular, - construction of railways, the currency market, the fight against pollution and other.

Second place, according to Rogers, goes to Japan, whose leadership is now making serious efforts to attract investors. He admitted that he owns shares in the company NTT.

- Now I have invested in blue chips in Japan. When institutional investors will come to the market of the country, these companies will be the first its purchase. Now they are quoted at 50% of the maximum value, - said the financier.
However, he questioned the prospects for the US:
- If you had invested in US securities in 1915, it would appear wise, but now you are likely to find yourself a fool. I do not like the strategy of buying expensive market in anticipation of further price growth. It may or may not occur. I prefer to buy at low prices basing on the price increase.

Rogers also estimated prospects for the euro zone low - in any case, he refrains from buying the currency of the European continent.

- I do not have any euros and I do not think that the currency will survive in the long term in its current form. I think something is going to happen in Greece or Portugal.

During his speech, the legendary investor has repeatedly stressed that, when developing the strategy, he prefers to rely only on himself, rather than relying on brokers. On the question of Financial One about the reasons for such a distrust, the famous investor said:

- I'm afraid I am a single player: I prefer to do everything by myself. And if I invest on my own – it usually turns out to be right. And to whoever I listened - whether the broker, journalist or politician - the strategy does not work. Why? Hard to explain. Suspicious of other people's advice. In my work, they proved ineffective purely statistically. I have long been engaged in investment, and have heard what brokers say - they lose money too often. At first, I tried to listen to the "competent" opinion, but gradually did it less and less. Now I find it hard to imagine a situation in which I would consult with someone else. However, if you give me some advice, I will be very happy, - he added with a laugh.  

source: Financial One