Resource industry conferences are a great place for investors to get information on commodities prices, market trends and stocks. But if you’ve attended even a few such conferences you know that sometimes the information handed out gets a little repetitive.
That’s particularly true in bear markets, where common advice is to look for companies with good management, companies with money in the bank, companies operating in safe jurisdictions — and once you’ve found them, buy low. While that sounds fairly simple, it’s obvious that not every investor is able to translate it into success.
At this week’s Vancouver Resource Investment Conference, Rick Rule, CEO of Sprott US Holdings, got behind the camera to explain where investors tend to go wrong, and, perhaps more importantly, how they can fix investing mistakes when they make them. He also talked about the best way for companies to operate in tough markets, and where the gold price is today.
Key thoughts from Rule include:
- To pick the right companies to invest in, “people need to ask themselves the nuanced questions, which they seldom do.”
- Investors shouldn’t be too hopeful. “I always buy a stock for a reason,” explained Rule, adding that if his reason for owning a stock disappears, he “sell[s] the stock very ruthlessly.”
- Don’t get excited about gold just yet. “Longer term, because I’m nervous about the US economy, I’m fairly bullish about gold. But not in the near term,” Rule quipped.
Watch the video below to hear all of Rule’s thoughts, and stay tuned for more video interviews from the Vancouver Resource Investment Conference:
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Related reading:
VRIC 2016, Day 1: Notes from the Floor
