Jim Rogers: Buy farms and China

Legendary investor Jim Rogers spies potential profits in agriculture and Chinese stocks.

"Venerable investor" Jim Rogers "has always been a multitasker", says Kopin Tan in Barron's. He set up the Quantum Fund with George Soros, famously retired at the age of 37 to travel the world, and has written six books.

Rogers was among the very first to notice that commodities were entering a long-term upswing at the turn of the last century, and has long been keen on Asia. So keen, in fact, that he moved to Singapore from New York a few years ago.

He thinks agriculture "is going to be one of the best investments over the next few decades". For most of the last ten years the world has consumed more than it has produced, so inventories are "near historic lows".

Farmers are dying out the average farmer in America is 58 and young people aren't interested. Prices will have to go a lot higher to attract labour and capital to the sector, or there will be food shortages eventually.

So "buy shares in farms, farm equipment, fertiliser and seed companies" around the world. Sugar also looks appealing, having fallen hard from its all-time highs. "I'm buying sugar as we speak." One sugar play Rogers likes is Malaysia-listed MSM Malaysia Holdings (KL: MSM).

As for China, so far the sceptics have been proved wrong on the country, notes Rogers, adding that people forget how many problems America had to overcome in the 19th century. China is going to be "the next great country in the world".

Look for the best industries, one of which is railways. "Their know-how is better than most people realise. So it's an export market as well."

Enter Hollysys Automation Technologies (US: HOLI). Rogers also owns the renminbi.

Other emerging economies he's watching include Myanmar. There's no local stock market yet, but Thai-listed Nok Airlines (BNK: NOK) is profiting from the nation's development.

Recommended

Saga’s figures are heading in the right direction – so should you buy?
Share tips

Saga’s figures are heading in the right direction – so should you buy?

Saga the over-50s travel and financial services specialist, has been struggling for years. But now, with the pandemic behind, it it is planning for fu…
5 Jul 2022
Is it OK to buy Scottish Mortgage investment trust again?
Investment trusts

Is it OK to buy Scottish Mortgage investment trust again?

Scottish Mortgage investment was hit hard by the tech-stock crash, and it is still being buffeted by headwinds. Should new investors wait for those to…
5 Jul 2022
M&G offers a solid 10.1% yield – but future growth is uncertain
Share tips

M&G offers a solid 10.1% yield – but future growth is uncertain

Financial services group M&G has one of the highest dividend yields in the FTSE 100. But it’s a complicated company, and a tough one to analyse, says …
4 Jul 2022
The income investor’s dilemma
Income investing

The income investor’s dilemma

Pay attention to dividend growth as well as initial yield when picking income trusts, says Max King.
4 Jul 2022

Most Popular

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks
European stockmarkets

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks

Ray Dalio’s Bridgewater hedge fund is putting its money on a collapse in European stocks. It’s likely to pay off, says Matthew Lynn.
3 Jul 2022
Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022
The income investor’s dilemma
Income investing

The income investor’s dilemma

Pay attention to dividend growth as well as initial yield when picking income trusts, says Max King.
4 Jul 2022