Wednesday, March 7, 2012

A Summary of a Gift to My Children by Jim Rogers


















Jim Rogers is a world traveler and legendary investor who made his fortune before he was forty. In A Gift to My Children, he offers his advice with confidence, paternal compassion, protectiveness, and love. Rogers reveals how to learn from his triumphs and mistakes in order to achieve a prosperous, well-lived life. He advises his children, and anyone seeking success in his or her chosen field, on things such as to trust their own judgment, focus on what they like, be persistent, see the world, and nothing is really new. Rogers gives examples of his own experiences, as a guide to life, adventure, and investing.


As the chapters begin, Rogers starts with telling you how to be yourself and rely on your own intelligence. He doesn’t believe in letting others do your thinking for you. Rogers emphasizes on not believing what you hear or read, no matter how many people believe it or how strongly they advocate it. He gives examples of business decisions he came across where he let others make decisions for him leading to failure. When he started thinking and deciding for himself, then he became successful. Rogers talks of his first business he started at the age of six where he collected empty bottles at baseball games to make a little cash because he was passionate about making money. He believes age is irrelevant when you are passionate about a goal. Rogers believes in dedicating yourself to what you feel passionate about. He goes on to tell about different jobs he worked as a teenager such as a convenient store owned by his Uncle. He always kept himself busy even when there weren’t customers in the store. Rogers felt there is always something you can be doing even if it’s dusting shelves.Rogers begins this book with a letter to his daughters. He informs them of who he is and what he does. The introduction letter tells of his life growing up, what he wanted most out of life, and how he accomplished his goals. Rogers states in the last sentence of his introduction that he wants to share with his daughters the things that are important for them to know so that they can too have happy and successful lives.

Traveling and seeing the world is a very important aspect of life to Rogers. He tells of how he has been around the world twice in 1990 and 1999. Rogers says you will discover more about yourself as you encounter and experience the world’s diversity. By doing this you will develop interests that you never entertained before and recognize your strengths and weaknesses. Rogers speaks highly of Mandarin language and China. He says China is gaining economic, political, and cultural strength, and will become an even more significant player internationally. He advises to pay attention to the major changes taking place in the world now. Everything changes so recognize and embrace it. Rogers tells us to keep an eye on the future and do not place a bet on that which is dying out. He says do not cling to anything that will eventually cease to exist because once something is gone, it is gone forever.

Rogers tells us not to stop when you are working toward your dream. He speaks of his advice but wants his daughters to know that he wants them to make their own decisions to accomplish dreams of their passion. He ends his books with telling his children to pass his advice on to children of their own someday.




The Ten Things Managers Need to Know from A Gift to My Children


1. Swim your own races; do not let others do your thinking for you. Rely on your own intelligence. In life there are times when you must make very important decisions and people will be ready to offer you advice if you as for it or not. You must always remember that the life you lead is yours and nobody else’s so decide for yourself what’s important to you and what you want before you turn to others.

2. Focus on what you like and dedicate yourself to what you feel passionate about. Try as many things as you can, then pursue the ones you enjoy most. The quickest way to success is to do what you like and give it your best. The least-happy people are those stuck in jobs they don’t love.

3. Live your life with a dream. When you begin something you may not always have a concrete picture or vision of the future but if you continue to be passionate and work hard at what you truly love to do, then you will eventually find that dream.

4. Most perceived wisdom is a misconception. Never blindly to accept what you hear or read, no matter how many people believe it or how strongly they advocate it. Always consider alternative interpretations.

5. Let the world be a part of your perspective. Learn philosophy, history, different languages, and learn to think. Don’t rely on books; go and see the world and be open to people who are different, whether home or abroad. You need a macroscopic view of the world.



6. It is the century of China. Make sure you learn Mandarin because it will be the next global language. People who can speak or read other languages have a great advantage over those who don’t. Pay attention to the major changes taking place in the world now. China is gaining economic, political, and cultural strength, and will become an even more significant player internationally. You must be aware of such developments, not only as an investor but as a world citizen.

7. Know thyself by understanding your weaknesses and acknowledging your mistakes. Look at yourself in the mirror and ask what drives you. Observe how you react to mistakes, so that you can respond more constructively the next time things go wrong.

8. Recognize change and embrace it because everything changes. Regardless of your perspective, refusing to accept the change is like swimming against the current of a thundering river. Try to resist the force, and you will not last very long.

9. Look to the future! People who can observe events as they unfold will certainly acquire wealth. If you are looking for success, be quick to start something new, something that no one else has tried. The more certain something is, the less likely it is to be profitable.

10. Lady luck smiles on those who continue their efforts. Once you take that first step toward your dream, put your full effort into it. If you want to succeed, you must never neglect it. Do not stop when you are working toward your dream.



Full Summary of A Gift to My Children

1.  Swim Your Own Races: Do Not Let Others Do Your Thinking For You

    1.   Rely on your own intelligence.
  • There are going to be moments in life when you must make very important decisions. You will find many people ready to offer you advice if you ask for it (and even if you don’t), but always remember that the life you lead is yours and nobody else’s.
    2.   If anybody laughs at your ideas, view it as a sign of potential success!
  • If people around you try to discourage you from taking a certain course of action, or ridicule your ideas, take that as a positive sign.
    3.   Be who you are; be original and bold but above all be ethical.
  • Pursue your own desires and aspirations with courage and devotion. No one ever became a standout success by imitating others.
    4.  You will meet people who will urge you to spend your money but you need to save it.
  • You must avoid the trap of spending money willy-nilly simply because you can. Not only is this a road to financial ruin, it can cause you to forget what’s important in life.


2.  Focus on What You Like

    1.   Age is irrelevant when you are passionate about a goal.
  • When you find something that interests you, do not let your age hold you back. Be bold and just do it.
    2.   Dedicate yourself to what you feel passionate about.
  • Try as many things as you can, then pursue the one (or two, or three) about which you’re passionate.


3.  Good Habits for Life and Investing

    1.   You need to be a self-starter.

    2.   Pay attention to details because it’s what separates success from failure.
  • If you love and care about what you do, you will naturally want to do it the best you can. In investing, as in life, the small details often spell the difference between success and failure. So you must be attentive!
    3.   Always live your life with a dream.
  • When you begin something, you may not always have a concrete picture or vision of the future. But if you continue to be passionate and work hard at what you truly love to do, then you will eventually find that dream.


4.   Common Sense? Not So Common

    1.   The most perceived wisdom is a misconception.
  • As you travel the journey called life, you will come across conventional wisdom – accepted “truths” about how to behave, or what to study, or eat, or how to invest. You must remember never blindly to accept what you hear or read, no matter how many people believe it or how strongly they advocate it. Always consider alternative interpretations.
    2.   The media often propagates conventional wisdom.
  • You should read the newspaper every day, but approach it –and all the media, for that matter – with a healthy sense of skepticism.


5.   Your Education, Part I: Let the World Be a Part of Your Perspective

    1.   Do not rely on books; go and see the world!
  • Travel and see the world extensively. You will broaden your perspective many times over. If you really want to know yourself and your country, go see the world.
    2.   You need to understand the significance of BRICS.
  • Nowadays you can hardly pick up a business publication without seeing a reference to “BRICs,” a popular acronym in the world of investing. BRICs refers to a thesis currently popular with investors and politicians that Brazil, Russia, India, and China are destined to be the world’s leading economies by the year 2050, and therefore are rife with investment opportunities.
    3.   Be open to people who are different, whether at home or abroad.

    4.   Keep an open mind and be a world citizen!
  • Keeping an open mind includes never closing yourself to the possibility that people are different from what you first imagined.


6.   Your Education, Part II: Learn Philosophy; Lear to “Think”

    1.   Philosophy will teach you how to think for yourself.
  • You must learn to think at a profound level if you want to understand yourself and what’s important to you. You must know yourself if you want to accomplish anything in life. Studying philosophy can help do just this.
    2.   Do current writings on philosophy help us learn to think?
  • To engage in philosophical thinking and to read books on philosophy are not the same thins. Reading helps develop our ability to think, but more effort is required to really sharpen the faculty.
    3.   The two ways of thinking.
  • There are two methods of examination that are particularly useful in all walks of life, including investing. One is to draw conclusions from your observations, and the other is to proceed solely on the basis of logic.
    4.   Don’t neglect the bear.
  • Most look for the bull and neglect the bear.


7.   Your Education, Part III: Learn History!

    1.   You need a macroscopic view of the world.
  • An interest in history, politics, and economics will help you see how occurrences in one country affect other nations as well, economically and in other ways.
    2.   Which history books tell us the truth?
  • History is multifaceted. There are historical studies in economics and politics; there is history as examined and understood from the viewpoint of the United States, from a European perspective, and from the outlook of various Asian, African, and South American nations. You will learn that most history is written by victors so has a clear view. You really cannot say whose history is the more important.
    3.   Connect your knowledge of history with your travel.
  • Study the history of your destinations before you take overseas trips. Without the historical context, you will not be able to fully understand much of what you observe.
    4.   History will show you which forces drive markets.
  • By cross-referencing historical events with long-term trends in the market, you will identify those developments that affect stock and commodity prices.
    5.   Nothing is really new.
  • History repeats itself in one way or another – or at least rhymes.


8.   Your Education, Part IV: Learn Languages (and Make Sure That Mandarin Is One of Them!)

    1.   Mandarin will be the next global language.
  • People who can speak or read other languages have a great advantage over those who don’t.


9.   It Is the Century of China

    1.   Pay attention to the major changes taking place in the world now.

    2.   If you buy Chinese stocks, then you are buying the future of this country!
  • The Chinese economy will continue to grow.
   3.    A hard landing cannot be avoided!

   4.    China equals commodities.
  • The rise of China brings with it a rise in demand for commodities. China consumes steel, iron ore, and soy; it is the largest consumer of copper in the world and the second leading consumer of energy, including oil.


10.   Know Thyself by Understanding Your Weaknesses and Acknowledging Your Mistakes

    1.   Always know who you are.
  • Of course you need to be aware of the circumstances that surround you, you need to be knowledgeable about the world, you need to know history. But even more important, you need to know yourself. Look at yourself in the mirror and ask what drives you. If you can understand these things up front, you are more likely to be able to keep your head in a crisis. Also observe how you react to mistakes, so that you can respond more constructively the next time things go wrong.
    2.   People are easily carried away by mob psychology.
  • Even those who call themselves professionals are at times persuaded by the mob.
    3.   Do not panic; learn the psychology.
  • To be a successful investor, you really need to understand psychology as well as history and philosophy.
    4.   Selling Hysteria
  • For the most part, it is the short-term trades that prices are driven by emotion. Mid-term and long-term investments are usually influenced more by the fundamentals.


11.   Recognize Change and Embrace It

    1.   Everything changes, everything.
  • To understand what is likely to happen in the future, you have to be able to understand current events and the changes presently under way in the world. All social environments transform over time.
    2.   No one has defied the principle of supply and demand and survived.

    3.   Change can be a catalyst.

    4.   Dealing with change.
  • Those who cannot adjust to change will be swept aside by it. Those who recognize change and react accordingly will benefit.


12.   Look to the Future!

    1.   Everyone would be a millionaire if he could read a newspaper from the future.

    2.   Many countries will come apart.
  • A hundred years from now, there will probably be anywhere between three hundred and four hundred sovereign nations on this earth, almost twice as many as there are now. Not one country in existence today has had the same borders and government for as long as two hundred years. The world will continue changing.
    3.   Do not place your bet on that which is dying out.
  • Keep your eye on the future. Do not cling to anything that will eventually cease to exist. No matter how much time or energy or money you invest in it, once something is gone, it is gone forever.
    4.   The women’s era is approaching!
  • They’ll be able to demand more freedom. Professions, education, politics, everything will change.
    5.   Pay attention to what everybody else neglects.
  • If you are looking for success, be quick to start something new, something that no one else has tried.
    6.   The more certain something is, the less likely it is to be profitable.
  • Nothing in this world is absolutely certain. When many people are absolutely sure of something, you should be suspicious.
    7.   Do not think in terms of what you wish.
  • Never act upon wishful thinking. Act without checking the facts, and chances are that you will be swept way along with the mob. Whenever you see people acting in the same way, it is time to investigate supply and demand objectively.
    8.   Know when not to do anything.
  • Anytime that you think you’ve become a financial genius –when, in fact, you simply have had the good luck to turn a profit – it is time to sit back and do nothing for a while.


13.   Lady Luck Smiles on Those Who Continue in Their Efforts

     1.   Do your homework, or you will end up with a glass bead.
  • Once you take that first step toward your dream, put your full effort into it. Do your homework. If you want to succeed, you must never neglect it.
    2.   The arrogant are blind to the truth.
  • If you let vanity and self-importance take over, you will lose all that you have achieved. And fast.
    3.   Do not stop when you are working toward your dream.


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