Jim Rogers, one of the world’s most renowned global investors and co-founder of
the Quantum Fund, spoke about his investments in the Uzbekistan stock market
amid growing international interest in the country. In an interview with Kursiv
Research, he explained why he decided to move away from U.S. equities, what
attracted him to Uzbekistan’s small but developing market, the risks he sees for
investors, and his assessment of the economy’s long-term potential.
— Jim, what in general drew your attention to Uzbekistan as a destination for
investment?
— Uzbekistan is a country with great potential. You have a great history. There
have been periods of immense success on this land in the past. You remember
Tamerlane? He was a colossal success; at one time, he conquered most of the
world.
Even today, Uzbekistan still has a huge geographic area, a large population, and
plenty of resources. From what I’ve seen, the government is trying to run the
economy in the right way and create incentives for people, including investors. I
make many mistakes, but it seems that right now, Uzbekistan is exactly the right
place to invest.
— You mentioned that you sold your U.S. and Russian equities. What was the
key factor behind your decision to exit the U.S. market?
— U.S. stocks are at record highs. They have been going up for the longest period
in American history. Since 2008–2009, American stocks have been going up. That
has never happened for so long in American history.
Maybe it’s going to go on forever. Mr. Trump says, «Don’t worry.» Well, I worry.
This hasn’t happened before. Historically, when everybody is happy, that is the
exact time to start asking questions. It’s time to look out the window and see what
might go wrong. I know this has happened in the past, and whenever it did, it was
the moment to ask questions.
— Why, amid global economic and geopolitical uncertainty, did you choose
Uzbekistan specifically?
— The market is small and it is developing. The government seems to be trying to
give people incentives to invest in the country. So, it’s a place with great potential,
lots of assets, and not many stocks yet.
I don’t know if I’m right, but whenever a government tries to encourage
investment, it usually leads to good results.
— Which sectors of the Uzbek economy do you consider the most promising
for long-term investment?
— There are not many shares on the Uzbekistan stock market yet. Therefore, I
basically bought every company on the exchange. Historically, if a market does
well and it’s a small market, everything does well, at least for a while. That’s my
historic experience.
I know that the government is trying to help, trying to encourage investment.
Usually that means you should invest.
— Was it difficult to collect data on Uzbek companies? Many complain that
there isn’t enough information.
— You can change that by telling the world about Uzbekistan. Most international
investors still couldn’t find Uzbekistan on a map, but that will change.
If the economy continues to develop and the state continues to help people invest
in the stock market, more international and local investors will come. It will take
education. It will take time for the world to learn about Uzbekistan again.
Education, time, and success will help inform people. The market is small right
now. Many people cannot invest because it’s small and they don’t know anything.
This takes a while.
— What risks should foreign investors be aware of when entering the Uzbek
market today?
— The risk is always risk. But the risk is that it’s a small market in a new
development. Somebody could change their mind. Somebody in the government
could say, «We don’t like people to be successful.»
They could change the rules. They could change the law. I guess that’s the main
risk right now: that the government might change its mind. I don’t think that will
happen, but that is always a risk everywhere, including America and Japan.
— What should the international investment community better understand
about Uzbekistan, in your view?
— Someone needs to let the international investment community know that this is
a country with a lot of assets, huge potential, and a government that is trying to
help.
When people learn that, especially when things start going up and continue to go
up, that will help educate people. It takes education. It takes time. But in the past,
what you are doing has usually been a good thing for markets.
— Final remarks on Uzbekistan as an investment destination?
— I would just say I’d like to come back to see Uzbekistan. You have some
fantastic places in your country. I would like to look around again. I do make many
mistakes, but I don’t think this is one. I think this is going to be good.
The Uzbek market is probably going to be good for several years now. Eventually
there will be more companies, more activity, and more knowledge.
I am optimistic about the future of Uzbekistan.
Jim Rogers: Investor and Traveler
Legendary American investor Jim Rogers, together with George Soros, founded the Quantum Fund in the 1970s, one of the most successful investment funds of its time. Over ten years, its total return reached approximately 4,200%.
Rogers has travelled around the world twice (both journeys were recorded in the Guinness Book of Records), exploring investment opportunities across different countries. He has authored several books on finance, including Investment Biker, Adventure Capitalist, Hot Commodities: How Anyone Can Invest Profitably in the World’s Best Market, and A Gift to My Children, where he shares his experience in global investing as well as his views on economics and education.
Rogers lives in Singapore, as he considers Asia to be the center of future economic growth. He continues to invest actively and regularly appears as a respected economic expert. Rogers is known as a proponent of long-term economic cycles and investing in undervalued markets.
