In the world of professional investors, the likes of Warren Buffett and George Soros and all of the hedge funds, we have to ask this question.
Does The Average Investor Stand A Chance?
How can the average investor compete in the same arena and be successful?
We are big believers in a price surge in gold, silver and many of the commodities so our area of focus and attention is on the natural resource sector and the continuing search for new opportunities amongst the thousands of companies. This is almost like looking for a needle in a hay stack, a few good gems in these thousands of companies many of which have no significant properties nor experienced management. Where do you find your best opportunities?
Much of the content found on investment websites like where you are reading this article is concerned with the macro picture, i.e., the inflation versus deflation arguments, the future of the U.S. dollar, etc. Of course your opinion of the big picture is the foundation for building your portfolio but rarely do you see the names of companies recommended to be purchased by these writers. This is no great mystery as the websites do not want to give, so called, free advertising to these companies, therefore, any reference to specific companies is a no-no and will be deleted from an article.
Suggested sources for companies as potential candidates to your portfolio include:
- Advertisers on websites like where you are reading this article - check out their properties and management and review recent price charts.
- Investment conferences - a great place to meet management of selected companies
- Research - some individuals really enjoy the art of researching and discovering their own companies. This is extremely time consuming, a commodity most investors do not have.
- Investment Newsletters - some newsletters have been around for years while many new ones are coming on the scene everyday. Seems everyone wants to be an 'expert' and have a newsletter. Some of individuals maybe qualified while others are just looking to get in on the action of an upcoming bull market.
Our subscribers often ask us how we find or select our new picks. We use a combination of tools starting with a list of all of the companies recommended by the newsletters and analysts which we follow daily. We have access to 8 newsletters and we use them for a variety of reasons.
Some of our newsletters are great in keeping us on the right side of the markets and laying out the big picture. Others give us insight on small juniors which have yet to hit our radar screen. Given these new names we can do our own research and decide for ourselves whether to purchase shares or perhaps long-term warrants on those shares, if available.
The upside of having 8 or more newsletters is access to the opinions of some of the best in the business and the macro picture.
The downside of multiple newsletters is the large number of different company recommendations. Of our 8 newsletters, there are a total of well over 200 different companies recommended. Wow, what does one do with so many different companies?
As you can imagine, many of the newsletters will focus on some of the major producing companies, the large capitalization companies, so there we have some consensus or agreement.
Then it gets very interesting as it seems that each analyst has favorites based upon their own view of the company's particulars and value of their projects. A taunting task remains to filter out the 200 plus companies as to any which we would like to follow or recommend, if any. We use numerous additional filters, i.e., corporate insider activity, charting, company's geographical location, the natural resource (gold, silver, oil & gas) and others.
Little wonder we have a steady stream of companies on our radar screen and my current portfolio now consists of over 80 different positions. If I were just starting out, some of these companies would not be in my portfolio, but I prefer to rate them as a hold as opposed to a sell and believe most will perform very well in the next 12 to 24 months.
Again, we ask the question:
Does the Average Investor Stand a Chance? Definitely!
Yes, we believe investors can be successful but, in our opinion, all investors must be prepared to participate in the decision process of which specific stocks, indices, warrants, etc to purchase. Those investors willing to spending the time and additional analysis will be richly rewarded as this bull market in the precious metals and energy sector surges forward.
Patience, due diligence and timing our entry points will lead investors to incredible gains in the coming months.
For those readers unfamiliar with our services:
- PreciousMetalsWarrants.com provides an online database for all warrants trading on the natural resource companies in the United States and Canada.
- InsidersInsights.com tracks the buying and selling of corporate insiders with a focus on the junior mining and natural resource sectors. Buy and Sell Alerts are issued as deemed relevant based upon our analysis.
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