When investing, it’s common to think, “What if I had made a different decision back then?” In particular, many investors experience regret, wondering, “Could I have made more profit?” One of the biggest turning points in investing is the timing of selling.
In this article, we will explore the story of Jim Rogers, who sold all his Japanese stocks in 2023, and consider how to avoid regret after making decisions. The lessons learned here can be applied not only to investing but also to everyday life.
Jim Rogers’ Decision
Jim Rogers publicly stated that he sold all his Japanese stocks in 2023. This has been reported in multiple sources, making it a reliable fact.
Selling Japanese Stocks and Securing Profits in 2023
Jim Rogers sold all his Japanese stocks in 2023, securing substantial profits. This decision is seen as an action to ensure significant gains rather than settling for small profits. By making this choice, he avoided short-term market fluctuations and gained the flexibility to prepare for his next investment.
A Long-Term Perspective That Supports His Decision
Rogers’ decision was based on comparisons with other countries and markets, as well as his future outlook. He analyzed the current state of the Japanese market calmly and made his decision based on his investment philosophy. Taking a long-term perspective allowed him to choose what he believed to be the best course of action at that moment.
Why He Didn’t Aim for the Highest Price
Rogers’ decision wasn’t about making a “perfect prediction” but rather about making the “best choice” based on the information available at the time. In investing, it’s impossible to perfectly predict the future, so making decisions based on current information is crucial. For him, securing profits and reducing risks was more important than chasing the highest price.
Nikkei 225 Hits Record Highs in 2024
In 2024, a year after selling all his Japanese stocks, the Nikkei 225 hit a record high. Does this mean his decision was a failure?
How to Interpret the Nikkei 225 Record Highs
However, Rogers has no regrets about his decision. The market’s upward movement includes factors unrelated to his investment strategy. He follows the philosophy of “not predicting future market changes, but doing the best he can at the present moment.”
Was Profit-Taking a Mistake?
If we define “investment success” as selling at the highest price, almost no one can achieve it. The market is constantly changing, and identifying the peak is extremely difficult. For Rogers, securing profits was a success in itself. He viewed his actions as an important step in preparing for the next opportunity.
The Importance of Risk Reduction
By securing profits, he avoided taking on additional risks. In times of market uncertainty, having confirmed profits provides financial and psychological stability. Moreover, having funds available allows him to seize the next investment opportunity.
Learning the “No Regrets” Investment Mindset
In everyday life, we often regret decisions, such as finding a cheaper store after making a purchase. Although this may seem trivial, it can still bring a sense of disappointment. In investing, realizing that “more profit could have been made” can be even more impactful. To avoid this, it is important to have clear decision-making criteria.
Focus on the “Process” Instead of the “Result”
Investing should not aim to always achieve perfect results. Instead, it is more important to focus on the process that leads to long-term stable performance. For example, creating a plan, acting accordingly, and reviewing the outcomes can help make better decisions in the future.
Preparing for the Next Opportunity
Securing profits allows investors to carefully consider their next opportunities. Having the flexibility to adapt to market changes is key to success. Reflecting on past successes and failures helps prepare for better decisions in the future.
Decision-Making Tips Applicable to Everyday Life
Even in everyday decisions like shopping, having criteria that allow you to say “this is good enough” can reduce unnecessary hesitation and regret. For instance, deciding to buy an item without endlessly searching for a cheaper option can save time and effort. This mindset applies equally to investing.
Conclusion: What is Investment Success?
Investment success is not just about maximizing profits. It is about following your own rules and making decisions you can be satisfied with. Jim Rogers’ example serves as an excellent lesson in the value of such decision-making.
Once a trade is closed, stop worrying about whether the price will go up or down. Focus on the profits realized at that moment—no one can predict the future. And once you’ve closed a position, avoid thinking, “What if I had kept it open?”
If you’re unsure, consider strategies such as selling 50% of your position while letting the remainder run with a trailing stop. This approach can help ease your concerns and provide a balanced mindset.