The price of a commodity will never go to zero. When you invest in commodities futures, you're not buying a piece of paper that says you own an intangible piece of company that can go bankrupt.
Jim RogersRead
I cannot invest the way I want the world to be; I have to invest the way the world is.
Interpretation
Investment decisions must be based on current realities rather than idealistic visions.
Jim Rogers emphasizes the importance of making investment choices that reflect the existing state of the world instead of how one wishes it to be. This quote suggests that a successful investor must be pragmatic and base their strategies on observable facts and trends rather than hopeful ideals, which can often lead to poor financial outcomes.
In practice
In a finance seminar, when discussing market strategies.
The price of a commodity will never go to zero. When you invest in commodities futures, you're not buying a piece of paper that says you own an intangible piece of company that can go bankrupt.
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
Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.
The world of derivatives is full of holes that very few people are really aware of. It's like hydrogen and oxygen sitting on the corner waiting for a little flame.
The stock market really isn't a gamble, as long as you pick good companies that you think will do well, and not just because of the stock price.
Complexity and interconnectedness matter as much as size in assessing risk in banking.
In other words, the percentage change in book value in any given year is likely to be reasonably close to that year's change in intrinsic value.
Investing isn’t risky; not being in control is risky.
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