Several months ago I gave a talk at the Value Investing Seminar in Trani, Italy (co-hosted each year by Ciccio Azzollini and Whitney Tilson) on the subject of investing in natural resource equities with a focus on precious metals related equities specifically.
Fast forward to today and prices are lower while fundamentals appear better (for an insurance asset like gold, at least!). Allocations to this area remain virtually non-existent amongst mainstream investors. Hence I thought this discussion might appeal to any investors charged with allocating capital, whether private individuals or institutions, possessed of contrarian instincts.
Here is the video along with a chronology of each section by theme for the time-constrained (all of us!).
[embedded content]
Key sections of the talk:
1:24 Long-term performance of gold
2:36 Gold stocks vs gold
4:45 Where are we in the gold stock cycle?
6:29 Royalty company valuations
7:17 An equity investment thesis
14:34 Anatomy of a mistake
18:52 The capital cycle approach to investing
20:45 Rewards – and risks – of investing in out-of-favour industries
22:30 Commodities vs the S&P 500
24:13 The case for natural resource equities
27:12 Q&A
34:17 End
With warm wishes for this coming year.
Be the first to comment