To: Terrible Toad who wrote (103 ) 7/26/1998 2:04:00 AM From: Jesse__Livermore Read Replies (1) | Respond to
Mr Rogers has already stated he is not a great trader and that he would probably be the worse trader around. But he is a fantastic investor with great patience! His major investment strategy is to buy things that are dirt cheap and then he will sit on that position for a long time until he is has been proven right. His only cost, is that his capital is tied up. When both of them: Soros and Rogers, teamed up together, they were the best publicly performing hedge fund in the world. And he doesn't have to prove anything to anybody. I'm always skeptical of people who have to blow their own trumpet and claim fantastic returns over a short period of time! The key to their success which Buffet, Soros and Rogers have already stated is not to lose your capital. The magic of compounding on your investment will take care of the rest.Most people have a fantastic year, maybe make over 100 percent and then the following year self destruct and lose it. Work out a steady compounding rate 10-12%, say over 15-20 years and you will come out way ahead of the field. I did some research and figured out that Mr Rogers is holding a portfolio of US treasury bonds since 1981 paying at least 14 percent or more. He could sell it on the open market today and make a fortune when US bonds are only paying 5.5-6 percent today. Imagine he figured during the late 1980's, that interest rates were coming down during that period of lower inflation, and then started to steadily add to his position!
