I previously wrote a post about Market Wizards: Interviews With Top Traders. This post is the eighth in a series of curated interview questions and responses from the notes that I took while reading the book.
Who is Jim Rogers?
Jim Rogers is perhaps the most well-known trader interviewed by Jack D. Schwager in Market Wizards. Rogers and George Soros founded the Quantum Fund in 1973, one of the longest-running and best-performing hedge funds in the world.
Jack D. Schwager was eager to interview Rogers “because of his stellar reputation as one of the shrewdest investors of our time” and Rogers is unique in the sense that he is one of the only traders interviewed in the book that considers himself a bad trader. Rogers says, “I am probably not the person you want to interview. I often hold positions for many years. Furthermore, I’m probably one of the world’s worst traders. I never get in at the right time.” Rogers humble response does not change the fact that he is widely considered as one of the most famous and successful traders of our generation.
The notes I took on this chapter are the longest, and I consider his interview to be the most helpful, most entertaining, and best interview in the book.
On a margin of safety:
Whenever I buy or sell something, I always try to make sure I’m not going to lose any money first. If there is very good value, then I’m probably not going to lose much money even if I’m wrong.
It sounds like you have a great deal of conviction when you put on a trade.
Yes, I usually do; otherwise, I don’t bother doing it. One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do. Most people – not that I’m better than most people – always have to be playing; they always have to be doing something. They make a big play and say, “Boy, am I smart, I just tripled my money.” Then they rush out and have to do something else with that money. They can’t just sit there and wait for something new to develop.