Category Archives: Investments

Commodities Are The Best Investment Today: Jim Rogers

23 Nov, 2010: Korea tension: Commodities are the thing to invest in, says Jim Rogers

In an interview with ET Now, Jim Rogers, Chairman, Rogers Holding, talks about the correction in global markets besides giving his views on commodities and India. Excerpts:

http://economictimes.indiatimes.com/thumb.cms?msid=6976432&width=300&resizemode=4Q1: Global markets are correcting and everyone is saying it is because of Korea. Would you endorse that thought?

First of all, global markets should be correcting about this time because they have been pretty strong recently and there is always some reason to correct. This time, it looks like it might be Korea. Whenever you have threat of war, usually everything goes down at first, then you have to figure out what to invest in after the initial collapse. In my view, the thing to invest in is commodities because if there is going to be war, it is always good for commodities and if there is no war, then commodities will rally like everything else. Continue reading

Notes for Commercial Real Estate Investments

Commercial real estate is defined as property that is used for the purpose of commerce. For example, an office building, a warehouse, retail store, shopping center or an apartment building with five or more units.

Today in 2010, due to the global recession since 2008, there is a much higher supply of commercial real estate than its demand, and hence the prices are attractive and can be negotiated hard by interested buyers.

http://images.businessweek.com/ss/07/05/0529_commercialrealestate/image/4_gherkinbuilding.jpg

We expect that commercial real estate prices may correct by 10-20% in 2011 depending on the country and city. In general one can’t go wrong with buying commercial real estate (office space, rather than shopping malls) in big cities if the time frame is 5-10 years.

The risk-reward is more in commercial property than in residential property. Commercial real estate returns can give attractive over 5-10 year period; much better than you would get from residential real estate of the same proportion.

Location is very important in commercial real estate. Our experience has been that “it is better in general” to have a small space at a busy city-center/downtown place, than to a big space at a suburb.

London and New York are two cities that will deliver good returns despite recession if you can invest for 5-10 years. Irrespective of where you are in the world, see if you can invest in commercial property in high growth cities like Mumbai, New Delhi, Hong Kong, Shanghai, etc. These cities can deliver 5x returns in 10 years. Continue reading

Renewable Energy Mutual Funds

Renewable and Alternative Energy Mutual Funds Compared. http://www.warrenkarlenzig.com/2009/02/23/renewable-and-alternative-energy-mutual-funds-compared/

Personal Finance Helpers: Alternative Energy Mutual Funds:  Most of the companies that alternative energy mutual funds invest in are companies that create energy through renewable, green sources.
http://www.personal-finance-helpers.com/2009/09/alternative-energy-mutual-funds.html Continue reading

Insider view of the Hedge Funds Industry

TJC: Thanks for joining in. How do you define a Hedge Fund? And how do you see the current state of the Hedge Fund Industry?

Industry Exec: Hedge funds are pooled investment funds with relatively less SEC regulation (in the US), and are therefore different mutual funds. Certain hedge funds are required to register with SEC as investment advisers under the Investment Advisers Act.  The Act does not require an adviser to follow or avoid any particular investment strategies, nor does it require or prohibit specific investments. Hedge funds typically charge a fee greater than 1%, plus a “performance fee” of 20% of a hedge fund’s profits. There may be a “lock-up” period, during which an investor cannot cash in shares. Continue reading