Jim Rogers: You’re Never Going To Make Money Buying Hot Stocks

In his latest interview with Real Vision, Jim Rogers discussed some historical examples which demonstrate why you’re never going to make money buying ‘hot’ stocks. Here’s an excerpt from the interview:

Jim Rogers: This is not my first rodeo, Raoul. I’ve seen this movie before. Many times, people get very excited. I can remember the late ’60s, if it had computer in the name, the stock went through the roof, even if it was a laundry, it didn’t matter. Didn’t matter what it was. We’ve all seen this before. We’re seeing it in Japan, we’ve seen in America in the late ’90s. This has happened before and it’s happening again.

Whatever the hot technology is of the day, those stocks for whatever reason are very, very hot. 150 years ago, it was railroads. There was a gigantic bubbles in railroads, and you know, Raoul? Railroads are still around, but you never made money in the stocks if you bought them in the bubble.

You remember 1929? 1929, Radio Corporation of America, RCA, became unbelievably expensive. Well, we still have radio. Radio merged with CBS, etc., and they’re still there but you never made money if you bought it in the bubble, so be careful. You ask how it’s going to play out, we’ve had bubbles before, we’re going to have them again, and they always end badly. If you buy the bubble stocks, you’re probably never going to make money.

You can watch the entire interview here: