Famous Traders and Their Strategies: Episode 4 – Jim Rogers

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Jim Rogers

Jim Rogers, famous for his witty and research-backed remarks about developments in the financial world, is considered one of the greatest traders of all time.

He set up the Quantum Fund with another legendary trader, George Soros, in 1973. Over the course of 10 years, the fund made a staggering gain of 4,200%. Jim Rogers is known for his accurate bullish calls on commodities in the 90s. He is also the creator of the Rogers International Commodities Index (RICI). As of May 2018, his net worth stands at $300 million.

Early Life

Born in Baltimore, Maryland, in 1942, he went on to study in Yale and Balliol College, Oxford, to earn degrees in history, philosophy, politics and economics.

In 1966, Rogers got his first job on Wall Street, and started investing in the capital markets, with an initial sum of $600. From 1966 to 1968, he served in the Vietnam War, after which he joined Arnhold and S. Bleichroeder in 1970. There, he met his future business partner, the legendary George Soros.

Together with Soros, he set up Quantum Fund in 1973.

The Success Story

Over the next 10 years, Quantum Fund performed phenomenally. The net gain percentage was approximately 4,200%, compared to the S&P 500’s gain of 47% during the same period. Quantum Fund was truly the greatest fund ever established in the market. After managing the fund for a few years, Rogers decided to retire in 1980, to pursue his interests in adventure and travel around the world.

In 1998, he set up the Rogers International Commodities Index. The fund has had the best performance record of any fund, regardless of asset class, with returns aggregating over 170%. Over the years, Jim Rogers has authored many bestsellers, sharing his knowledge and experience with the world, including Adventure Capitalist and Hot Commodities: How Anyone Can Invest Profitably in the World’s Best Market.

In 2011, he introduced a new index fund, called The Rogers Global Resources Equity Index, which focuses on top companies in the agriculture, mining, metals and energy sectors, as well as those in the alternative energy space, including solar, wind and hydro.

Trading Strategies

Jim Rogers believes that it is dangerous for traders to not do their homework before investing in the markets. He stresses the fact that those who do not learn from the past suffer in the long run. This can be explained by the fact that he doesn’t trust technical analysis that much. Rogers looks at the charts mostly to see past action, but maintains that the future can never be predicted.

Patience is a virtue in this game, according to Rogers. He says that one of the best strategies adopted by traders actually includes doing nothing; nothing till they are forced by the markets. According to him, hasty decisions can cost a lot in trading.

Rogers advises traders to not restrict themselves to one asset class. He is a big fan of commodities and considers them ignored by most traders, despite the large opportunity that commodities offer.

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Jim Rogers remains active in the trading world offering practical advice and thought-provoking statements. Recently, he issued a warning that there looms an impending financial crisis, which could be the worst in history. Whether this prediction pans out or not, only time will tell.

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