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It is common knowledge that the number one rule in investing is to never put all your eggs in one basket. And, while it sounds simple enough, not every investor lives by it. Even though diversifying your portfolio might not make you completely immune against risk, it is a proven way to meet your investment goals and cut down risk.
A common characteristic of most seasoned investors is their ability to identify opportunities to leverage for future gains. Today, there is a wide range of investment vehicles available to the public, and many viable opportunities have been identified in raw materials investing.
Just like stocks and bonds, raw materials can also be traded on exchanges. Even though new investors might want to start with trading stocks and exchange-traded funds (ETFs), most veteran traders consider raw materials trading to be more profitable and a good hedge against inflation.
One trait that many legendary raw materials investors share is that they know how to choose the best time to enter and exit the market. This is what sets them apart from others. This piece looks at some veteran businessmen who made a fortune through investing in raw materials.
Josip Heit
Josip Heit was born in 1977 in Croatia. His early childhood and most of his early education happened in Kastela. However, later on, Heit traveled to many different locations, which afforded him the luxury of learning many languages, including German, English, Italian, Russian, Romanian, and French.
As an opportunist, Josip Heit discovered that the market demand for natural raw materials was fast-growing, so he founded multiple raw materials-related companies over the years.
Heit also had the foresight to recognize the potential of the mineral wealth of Madagascar and, in 2015, with the assistance of his partner, he expanded a precious metal mine in this region that they are now operating.
His breakthroughs in various regions enabled him to expand his mining business to South America. With the help of his local partner, Gauchin, Josip Heit founded another company called GSB Gold Standard Operations. This, too, was a successful venture.
Now, Josip Heit is Chairman of the Board at GSB Gold Standard Banking Corporate AG.
Jim Rogers
Jim Rogers was born in Alabama and began his entrepreneurial journey at the age of five - he collected soda bottles. Later on, he earned degrees in philosophy, history, and economics at Oxford and Yale University. Then, with just $600 to his name, Rogers created ‘Quantum Fund’ with the help of his partner. He made his first $1 million at age 35.
In the 1990s, Rogers founded the Rogers International Commodities Index, and he placed a heavy focus on investing in agriculture because many people were shying away from the agricultural market.
Larry Hite
Larry Hite was a zealous trader with a lot of investing talent. He grew up in Brooklyn. His entrepreneurial journey was an interesting one, seeing as many of the things he tried failed. However, these were just stepping stones to his bigger breakthroughs.
In the 1970s, Hite became a distributor and merchandising dealer. Then, in 1981, he co-founded Mint and developed computerized statistical models. Just 10 years after its launch, Mint saw annual returns of more than 30 percent, which made it the world's most popular commodity trading recommendation.
However, Hite worked on his trading models through Hite Capital Management, which is a family organization that had a 70 percent return in 2008. It also only had one year of losses.
Eike Batista
If there is one lesson that can be learned from the businessman Eike Batista, it’s the following: While trading and speculating, use the inherent insider knowledge that you have acquired from your birthplace.
At age 23, Batista found a major gold rush occurring in the Amazon River basin. To seize the opportunity, he started the gold-trading company Autram Aurem.
Batista had earned a profit of $6 million after a year and a half. A lot of competition started popping up and he decided to go in a different direction. He bought and mechanized a pick-and-shovel operation in 1983.
It was the first mechanized alluvial gold mine and ended up grossing $1 million per month for Batista.
Victor Sperandeo
Sperandeo is an expert in the energy and metals sectors. During an interview in 2012 with HardAssets Investor, he explained that, to form opinions about the economy, he is monitoring what governments are doing and what they are not doing. One of his concerns about the activities of the current American administration is that they created an overly regulated political environment.
Between 1971 and 1988, when Sperandeo started his trading career, he never had a losing year in his trading account. Additionally, during this period, he grossed $10 million for all commodity accounts managed by him.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.