Jim Rogers Experience
Story No. 1

Discovering Jim Rogers
by a Jim Rogers Fan

Rich
Dallas, Texas

In 1986, I moved from Texas to NY, to enter graduate architecture school at Columbia University. My sister told me that she had a friend who wanted me to check something when I got there. Her friend was this eccentric jeweler in East Texas, who apparently enjoyed the stock market. He said there was a guy named Jim Rogers who had a very colorful reputation on Wall Street, and was one of his favorite investment gurus. He was keenly interested in this guy. He had learned that Rogers was teaching at Columbia. He wanted me to check out the college book store to see what materials Rogers was using to teach with.

I was just a green 25 years old back then, not so wise to stocks. I didn't know any investment gurus. I barely knew what a PE ratio was. I had never heard of Jimmy Rogers. But when I was in the book store getting my class books, I tried to find the business section for a Professor Rogers. There was nothing there. Oh, well. The request kinda stuck with me, because I had always wanted to learn about investing. Ironically, the MBA school is right next door to Architecture. Occasionally, I would venture in to the MBA library, to go read those expensive Value Lines that I couldn't afford.

Months passed. A semester passed. It was springtime, 1987, probably around March. One day, as I entered my old messy architecture building, I caught an announcement taped to the wall. Some student group was sponsoring a lecture at the business school. And their featured speaker was Jim Rogers. 8:00pm. All invited. I'm sure I was the only person in the entire architecture building who even took notice of this, as most architecture students could care less about anything to do with business school. I was quite busy, too, and not sure I would go. Normally, I would blow off any extra activity like this. But as I was working that night in the architecture studio, that little voice told me to take a break. What the hell. It's only an hour or two. He might be special. I can always leave early if it's boring. It's only next door. Literally 2 minutes away. So I went.

I entered a large dark lecture hall with theatre seating. Maybe a few dozen MBA students were scattered near the front. And I, probably the only outside guest who bothered to notice the announcement, sat way in dark back corner, ready to escape.

What I got that night was far from boring. His lecture was about how to get rich. He gave us his life story. Went through his investments of the 1970's: the tampax thing, the oil boom, the oil bust, the the rise of garbage stocks that nobody on Wall Street would believe him on, the principals of supply and demand. He explained how he got to New York with his Volkswagon, $10k and a wife - "assets and liabilities" he joked. I don't have a great memory, but boy do I remember the magic of that night, including many of his jokes. It was a life altering moment for me. I was glued to his every word.

But there was one thing that happened that night that was most incredible. It was at the end of his lecture. He was taking questions. Somebody asked him what he was investing in now?
His answer, "I'm am currently completely out of the market. I do not own anything."

Mr. Investment guru can't find anything to buy? That seemed odd. Why?

"Because, we are going to witness the biggest run on the stock market since the 1930 crash."

Now that seemed pretty unbelievable at that time. I mean, even I was making some easy change on some gold funds back then. I don't think anybody in the room was able to take him seriously at that very moment. It just seemed a little too strong of a statement. But he didn't hesitate. He did not mince words.

When is this crash going to happen?

"I think it's going to happen before the end of the year."

That was the last I saw of Rogers at the time. But it's a night I'll never forget.

By July, my gold funds seemed to have reached a peak. I was wondering if I should sell. 70% gain in 6 months was pretty good. I sold off half. In the fall, maybe late September or early October, I saw a chart in Barrons. As I recall, I believe it showed a sharp increase in stocks, crisis-crossed with a sharp decline in bonds. An X shape relationship. It was a shape they said hadn't been seen since just before the 1930's crash.

Hmm. Warn me once, warn me twice, I'm selling out. Maybe Rogers was right, after all.

I think we all remember what happened in October 1987.

As I read years later, that crash came on Jim Rogers' own birthday.

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