A nice easy read written by Jim Rogers to his 2 children. Much of the wisdom is what we wish for our own children.
My key takeaways from this book:
- Think for yourself and don't be affect by others' opinion. It is ok to be different. Think different. Do not seek to follow the crowd. The news may not be true, even history books may not be all true. Do your own homework. Be hardworking. Be confident.
- Jim got me interested in studying how economic events affect stock market cycles. Perhaps I will look at Singapore's market for a start. He thinks that nothing is new. Everything that is going to happen has happened before.
- Learn to speak Mandarin and English. China will rise to be a superpower. Jim thinks in the 21st century,
- Invest. Save and invest. Let time work in your favour.
Just reading the level 2 outline of the book can give you a rough idea of what the book is about:
- Swim your own races: do not let others do your thinking for you
- Decide for yourself
- Donna de Varona: "I always used to watch the other swimmers, but then I learned to ignore them and swim my own races"
- If anyone laughs at your ideas, view it as a sign of potential success!
- Be who you are. Be original! Be bold!
- Be ethical
- Save
- Focus on what you like
- Age is irrelevant when you are passionate about a goal
- Dedicate yourself to what you are passionate about
- Try as many things as you can, then pursue one/two/three you are passionate about
- Even if you don't become wealthy pursuing your passion, you will be rich in satisfaction
- Good habit for life and investing
- Be a self starter
- Under promise, over deliver
- Attention to details is what separates success from failure
- I put in 5 hours for studying an exam. I never stopped studying
- Live your life with a dream
- Common sense? Not so common
- Most perceived wisdom is a misconception.
- Don't blindly accept what you hear or read.
- The media often propagate s conventional wisdom
- Cross check info from media
- Your education part I: let the world be a part of your perspective
- Don't rely on books;go and see the world!
- Understand the significance of BRICS
- Bullish about Brazil and China, bearish about Russia, skeptical about India
- Brazil produce sugar, raw material of alternative energy ethanol.
- Russia will break up into many countries.
- Russia will not increase supply of commodities -> bullish on commodities.
- India stifling bureaucracy and lack of infrastructure
- Be open to people who are different, at home or abroad
- Keep an open mind and be a world citizen
- Your education part II: learn philosophy; learn to "think"
- Philosophy will teach you to think for yourself.
- Think outside established framework
- Examine things independently
- Do current writings on philosophy help us to think?
- Reflect on situations where conventional wisdom and customs turned out to be wrong
- The two ways of thinking.
- Draw conclusion from observations
- Based on logic
- Don't neglect the bear
- Your education part III: learn history!!!
- A macroscopic view of the world is what you need
- Which history book tells us the truth?
- Connect your knowledge of history with your travel
- History will show you which forces drive markets
- Nothing is really new
- Your education part IV: learn languages (and make sure mandarin is one of them)
- Mandarin will be the next global language
- It is the century of China
- Pay attention to the major changes taking place in the world now
- Spain dominated 16th century
- France most prosperous 200 years later
- Great Britain dominated 19th century
- America dominated 20th century
- China will dominate 21st century
- buy chinese stocks and buy the future of the country!
- A hard landing cannot be avoided!
- Hard landing like those in 1989 and 1994 -> good time to buy shares
- China equals commodities
- Know thyself by understanding your weaknesses and acknowledging your mistakes
- Know who you are
- People are easily carried away by mob psychology
- Do not panic; learn the psychology
- Selling hysteria
- Recognise change ad embrace it
- Everything changes. Everything
- No one has defied the principle of supply and demand and survived
- Change can be a catalyst
- Dealing with change
- Look to the future!
- Everyone would be a millionaire if he could read a newspaper from the future
- Many countries will come apart
- Do not place your bets on that which is dying out
- The women's era is approaching
- Pay attention to what everybody else neglects
- To most certain something is, the less likely it is to be profitable
- Do not think in times of what you wish
- Know when not to do anything
- Lady Luck smiles on those who continue in their efforts
- Do your homework or you will end up with a glass bead (instead of a diamond)
- The arrogant are blind to the truth
- Do not stop when you are working toward your dream
- Pass this message onto your child
