Renowned investor and analyst Jim Rogers is well-known for his understanding of the world market and economy. He is credited with saying, among other things, that commodities have a higher long-term value than other investments. He frequently emphasizes how material possessions like wheat, oil, or gold have inherent value that can never completely vanish.

In his discussion of investment strategies, Rogers makes a clear distinction between stocks and commodity futures. Commodities are tangible goods with practical uses, whereas stocks represent ownership in businesses that may go bankrupt or fall short of expectations. This indicates that their worth is based on practical application rather than ethereal financial calculations.

Consider purchasing shares of a tech startup as opposed to a pile of sand. While the success of the tech startup is dependent on uncertain factors like market trends and competition, the pile of sand has immediate and useful uses, such as construction material. According to Rogers, commodities are more stable long-term investments due to their inherent utility, which is independent of business performance and economic conditions.

By highlighting this distinction, Rogers highlights how crucial it is to comprehend various asset classes and their distinctive qualities when building an investment portfolio. In order to protect themselves from market and economic volatility, he advises investors to diversify their holdings by adding physical assets.