Just after making a profit, the next good investment opportunity may not appear right away. So stay calm and wait patiently. That’s why I say there are only 20 investment opportunities in your life. Because then you can wait for your next investment opportunity with peace of mind.

Learn to calm down and wait, use this time to start learning again, and invest cautiously when new opportunities come. But many people are impatient and eager to shoot, so they fail. If you can’t wait anyway, I suggest you go to the beach and drink some beer.

The principle of investing is very simple: “buy low and sell high”

Q: I would like to ask you to give us some investment advice. Do you have any advice for prudent investors?

Rogers: First, I want to tell them not to be so indecisive. Although there is no “win” rule in investing, it is not difficult. Simply put, “buy low, sell high”.

It sounds simple, but it’s hard to do. Because the vast majority of people only focus on the bull market, but they are indifferent to the bear market. Think about whether you are like this. Seeing that the stock price goes up in the bull market, it takes a while to follow the trend and enter the stock market. This will not work.

I do the exact opposite, I often watch bear markets to see which stocks are bottoming. When people are frantic, I instead calm down and look for penny stocks that no one is paying attention to.

In 1973, George Soros and I co-founded a hedge fund that invested in cheaper stocks and commodities. These investments have been hugely successful, with returns of up to 4,200% over 10 years. So “buy low and sell high” is not that difficult.

I bought panic selling Japanese stocks during the Great East Japan Earthquake, and they did pay me a lot. I sold a lot of Japanese stocks in 2019, but now I’m paying attention to them again.

In addition, I also invested in Zimbabwe, but the Zimbabwean dollar suffered severe inflation and was abolished in 2015, which was extremely confusing. I think 5 or 10 years from now the return on that investment will be pretty good too.

The first rule of investment success: work hard to accumulate wealth

Q: Do you have any other suggestions besides “buy low and sell high”?

Rogers: First, learn to save money and accumulate capital. Wealth is not innate, especially young people, whose assets are very limited. So I suggest that you should work hard first and accumulate capital through success at work.

While everyone wants to get rich overnight, it’s never easy. So my next piece of advice is to learn to wait for the moment to invest. A successful investor tends to spend most of his time waiting and doing nothing else. Invest decisively when the time comes, then wait.

The second rule of investment success: become an expert in a certain field and expand the knowledge reserve

Rogers: The next piece of advice is to fully research the area you’re going to invest in until you become an expert in that area. Most people will start investing blindly based on information on TV and the Internet, such as seeing “Apple’s stock price is very cheap” and “can rise to $30,000”, but making money is not that simple.

Investment fields can be based on your preferences, fashion, cars, sports, food and anything. If you are interested in fashion, you can research related information through books or the Internet. Then, don’t only have three minutes of heat, and stick to it for many years. If you can do this, you will naturally have an investor’s perspective and an investor’s thinking.

Of course, you may be tempted to show off your idea or discovery to friends and family, but don’t reveal it to anyone at first, but quietly investigate potential business opportunities or businesses in the relevant field.

Of course, you can’t fish for three days and dry the net for two days, but you must persevere. That way you can spot promising opportunities or businesses ahead of analysts on the Financial Street and Wall Street.

Also, don’t buy investments suggested by others, investments should be based on your own research. I always do this in silence by myself, and I should continue to do so in the future. Because past experience has taught me that it is at a disadvantage to obey others.

Q: A lot of people think that investing is something you get for nothing, so they stay away from it.

Rogers: If investing requires doing all the things I just said, do you still think it’s unearned? Investing takes a lot of time and effort, as does selling. Investments are often based on long-term investigations into a field. It may take 5 or even 10 years to do this. Therefore, investing is by no means an easy way to make money.

The third rule of investment success: be patient after careful investment

Rogers: If you only have 20 investment opportunities in your life, you will definitely be more cautious about investing, and you will not invest blindly around. Before investing, I think you will do your research until you feel safe. This is the so-called successful investment, which is to do enough research before investing, and then proceed with caution.

One more piece of advice is very important. That is to learn to close in time after selling the stock. Often, people start new investments right after an investment closes. Especially when you make a lot of money and you are complacent, you must learn to take it as soon as possible.

Don’t immediately turn your attention to the next deal, but stay focused on the one in front of you.

Learn to calm down and wait, use this time to start learning again, and invest cautiously when new opportunities come. But many people are impatient and eager to shoot, so they fail. If you can’t wait anyway, I suggest you go to the beach and drink some beer.

In fact, “learning to wait” is also an important factor in investor success. For investors, it is important to be able to sit back and watch what happens most of the time.

In my experience over the years, the next great investment opportunity never appears immediately after a profit. So stay calm and wait patiently. That’s why I say there are only 20 investment opportunities in your life. Because then you can wait for your next investment opportunity with peace of mind.

To be successful in life and investing, you must understand the world, study history and philosophy.

Q: The interview is drawing to a close. You always say that studying history and philosophy is very important, why is that?

Rogers: If you want to be successful in investing, you have to look to the future and talk to the future. Therefore, knowledge of history can be a powerful weapon.

Mark Twain once said, “History is always strikingly similar.” As this wise saying goes, history, like rhythm, always reappears in a slightly altered form. Similar things that have happened in the past will happen again in the future.

Therefore, if you understand what happened in the past, you can learn from history. Most of the future is an extension of the present, and of course there are surprises. Knowing the history, then we can deal with it calmly. To study history is to understand human beings, which is to understand crises.

When I teach my children history, I often tell them not to rely on one source of information, but to refer to multiple media at the same time. We must collect information widely and learn to piece together the pieces.

In addition, studying philosophy is also very important. Philosophy is the study of human nature and the nature of society. To understand the future, one must understand human beings. So, studying history, reading literature, watching movies and plays, and understanding human beings are vital things.

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