Me: Jim, we’ve talked about buying… how do you know when to sell an asset?
Jim Rogers: When people are getting hysterical, you can sense it just by market action… if you read the press you can see when everybody's talking about whatever it is that’s the best thing, something going to change everybody's life… and how, boy, it's a whole new era... You hear the same words every time, every time, they are the same. Investors and the press use the same expressions about how great things are now. [For example,] Amazon can never go down, and will never go down and is going to go own the world someday.
When you hear all that kind of talk… I mean, fortunately or unfortunately, I have read about a lot of markets in my day and they always say the same thing. Absolutely, "a new era." Oh, how many new eras have we had in history? It’s just amazing.
Me: So you're talking about really using history to interpret the current market.
Jim: Yes… If you understand history, you're probably going to be a much better investor. You're going to be a much better at everything if you understand history, because it all happened, this all happened before. I assure you, we all put our trousers on one leg at a time, and we always have, and we always will.
But you need to understand the basics of how the world works and the best... A good way to do that is to know about what has happened before. And if you know what's happened before, then you'll probably be a step ahead of figuring out what's going to happen.
- See more at: http://sbr.com.sg/markets-investing/commentary/jim-rogers-tells-us-when-sell-and-which-bubbles-watch#sthash.Scl114nQ.dpuf
Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.
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