I've mentioned Investment Biker (Random House, $25, 402 pp.) several times in recent months as the "must read" investment book of the year, and suggested you buy it on a "trust me" basis. Those of you who have done so are aware of why I said that. Let me spell it out in a little more detail.
The book is basically a tale of how Jimmy Rogers (along with a lady who is now his wife) became the first person to ride a motorcycle around the world. Strictly as a travelogue and an adventure story, it's a good read. But that's not the point here. The author is an old friend of mine, and although he's pretty opinionated (so am 1, they tell me) I can't remember ever disagreeing with him about anything more substantial than what to have for dinner. And that's why I like this book. His assessments are spot-on.
Coming from a small town in Alabama, Jimmy wound up as George Soros's partner, but decided he wanted to do some things besides make more money. This 65,000 mile motorcycle trip was one of them.
The value of this book is not so much hearing Rogers explain what's going on, but seeing how a master interprets its investment implications. A few examples. He wouldn't put a nickel in the old Soviet Empire, seeing the rise of warlords and border wars for at least the next generation. He's hit on the right way to invest in China-not by putting money directly in the country, but by owning the shares of trading companies controlled by overseas Chinese, who know their way around. His assessment of what's likely to happen in northern Asia is simple, but brilliant. The Russians have lots of resources, but no people or capital. The Chinese have lots of people, but limited resources, and little capital. The Japanese have lots of capital, but no resources and a declining and aging population.
Most of his trip was through the Third World (which is my specialty) and his description of it is (almost) as good as going there. Because almost all of these countries are rapidly reforming and freemarketizing, the opportunities are huge. If Jimmy wasn't already -wealthy and otherwise occupied, he could have settled in any of a dozen places he describes and made a fortune. It's a good book, for that reason, to give a young person who's wondering what to do with him or herself. "Getting a job" here in the U.S. is not the answer, and this book makes the reasons very clear.
As an aside, my favorite section was on Zaire, perhaps the strangest country on the planet at the moment. But that's why I like it. Pedestrian opinions about places like France and England are a dime a dozen.
In conclusion, you need to read this book. All bookstores should have it, or order it by calling 800-854-6991.
You can also order online by going to Laissez Faire.
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