Jim Rogers' Investing Wisdom: Insights from Saxo Unfiltered

Saxo’s Singapore team recently hosted the “Saxo Unfiltered: The Election” event, where legendary investor Jim Rogers captivated the audience with his timeless investing wisdom and candid views on the current economic landscape.

Mr. Rogers’ Views on Global Economy and Markets

The US Election & Market Outlook

Rogers emphasized that the upcoming US elections could trigger market turbulence. He believes the US is overdue for a bear market, and with prolonged financial challenges on the horizon, he has largely sold his US shares. Historically, he pointed out, whoever is leading in the polls at this stage often does not win the election.

Bets on China and Uzbekistan

In a contrarian stance, Rogers favors regions like China and Uzbekistan for growth opportunities, expressing caution about traditional giants like the US and Europe. He sees potential in these emerging markets, highlighting their capacity for significant transformation and growth compared to more established economies, which may have limited upside at present. Mr. Rogers sees the structural change in Japan as a positive but remains concerned about high debt levels there.

"Cheap and Change"

Rogers emphasized that the best opportunities lie in undervalued markets or assets undergoing significant transformation. He highlighted India and Indonesia as examples of countries currently experiencing major change. Though he regrets selling his Indian stocks too early, he doesn’t find the current levels attractive enough to re-enter.

Commodities

Known for his bullish stance on commodities, Rogers reiterated his belief that real assets such as silver, oil, wheat, and copper will gain value, especially as inflation returns due to excessive money printing.

Silver Over Gold

He highlighted silver as a particularly attractive investment now, with prices down 40% from its all-time high, while gold is trading at record levels. If he were to buy today, Rogers would choose silver over gold, given its relative value. However, over the long-term, he still plans to buy more of both the precious metals.

Electric Vehicles

Rogers anticipates that the global transition to electric vehicles (EVs) will boost demand for essential materials like copper and lead. As EV adoption accelerates, he sees these commodities as critical to the future.

Agriculture

Rogers painted a bullish picture for agriculture, pointing out that farming is becoming less competitive due to a declining number of new farmers worldwide. With the average age of farmers increasing—76 in Japan, 58 in Australia and the US—he sees the lack of competition leading to exciting and profitable opportunities in the sector. "The world is running out of farmers," he noted, suggesting that those who step in will reap significant rewards.

Mr. Rogers’ Investment Philosophy

In addition to his market views, Mr. Rogers also shared his investment philosophy, which reflects decades of experience navigating both successes and failures in the financial world:

Understand the Market

Rogers cautioned that even if you're right about the fundamentals, you can still lose money if you don't understand market dynamics and the behavior of other participants. He emphasized that investing is more than just knowing facts—it's crucial to understand how markets move and how other investors think.

Invest in What You Know

A key piece of advice Rogers offered was to never invest based on hot tips. He strongly advised against investing in anything until you know a great deal about it yourself, warning that blindly following tips can lead to costly mistakes.

Sticking to what you understand deeply is essential, according to Rogers. He warned against chasing hot trends and emphasized the need for patience and thorough knowledge of any investment.

Learn from Mistakes

Reflecting on his own career, Rogers advised young investors not to fear losing money, especially early on. He believes that making mistakes early can be a powerful teacher, helping investors become more resilient in the long term.

Be Boring

Rogers encouraged "boring" investing—focusing on sound fundamentals, not chasing the latest fads. His focus remains on steady, reliable strategies that deliver over time.

Jim Rogers' investment philosophy remains grounded in patience, deep research, and the belief that enduring value lies in real, tangible assets. For investors looking to navigate uncertain times, his insights offer timeless wisdom.