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June 23, 2010

Position Updates (June 23, 2010)


Every once in a while, it is useful to go over what has changed amongst the positions I have mentioned. I want to make one thing clear. This is a diary of my investing. This isn’t a list of recommendations for playing along at home. These are not recommendations to do anything. AXM.ax I have nothing to add. To the best of my knowlege, ... Read More
Categories: Investments
Positions Mentioned:
June 8, 2010

Worried About Wiluna


Mining is a very difficult business. As an investor, it is even tougher. Most mining companies trade at roughly fair value. Even the cheap ones are rarely cheap enough to interest me. The thing about mining is that when something goes wrong, you can lose everything. To compensate for this risk, I only want mining plays with five-fold upside or better based on current ... Read More
Categories: Investments
Positions Mentioned:
June 6, 2010

Got Gold?


  Got Gold? I’m in Invercargill, the southern tip of South Island, New Zealand. I have one week to go before finally heading home. I want to see as much as I can. I’m supposed to be escaping the next data point. However, I cannot escape the fact that there’s a tempest brewing and it’s about to make landfall. The Euro is imploding. Despite protests ... Read More
Categories: Investments
Positions Mentioned:
April 28, 2010

Designed To Fail…


I’m sitting here watching CNBC fill airtime with stories of how Goldman Sachs created securities that were designed to fail. We are supposed to feel sorry for the wealthy and financially savvy institutional investors who bought these things without doing their due diligence. This was a closed game that only a few very large investors were even invited to participate in. If you don’t ... Read More
Categories: Investments
Positions Mentioned:
April 21, 2010

US Global (Gearing In Practice)


I recently wrote about gearing. Some industries really lend themselves to gearing. Let’s see how that works in practice. One of my best investments of all time was US Global Investors (GROW: Nasdaq). US Global is the manager of various mutual funds with a particular focus on Eastern Europe and natural resources—both sectors that I am optimistic about. In the asset management business, as assets ... Read More
Categories: Investments
Positions Mentioned:
March 24, 2010

MF Global


I normally invest in companies, but occasionally, something sets up just right for what I’ll call a trade. A trade is an investment that is intended to last from a few days to a few months depending on various conditions. Basically, this is an investment with a near term catalyst. The goal is to buy shares right away, average down if it goes against ... Read More
Categories: Investments
Positions Mentioned:
March 20, 2010

Victory For Gold


Which business am I? Would you be long or short? In 2009, I had 2.1 trillion of revenue and 3.5 trillion of expenses, for an operating loss of 1.4 trillion. For 2010, I’m predicting a small increase in revenues to 2.2 trillion while expenses stay roughly constant at 3.5 trillion. Through heroic efforts, losses will be staunched to only 1.3 trillion this year. I ... Read More
Categories: Investments
Positions Mentioned:
March 16, 2010

Mining Services (Part I)


Gold is going higher, but it’s hard to find an intelligent way to gain leverage to it. Sure you can own gold, but if it more than triples from here in the next five years, I’ll be shocked. You can buy the producers, but they all have warts. Either they’re overvalued, they keep diluting investors, their mines are in countries that you’d be scared ... Read More
Categories: Investments
Positions Mentioned:
March 14, 2010

Didipio


We owned shares in Oceana Gold, (OGC: Canada). They had stable yet depleted mining assets in New Zealand that were clearly worth more than the whole company. They also had acquired a gold property in the Philippines named Didipio. Didipio, once built, was going to take the company to the next level. We were enamored with it, but it was going to cost AUD$154 ... Read More
Categories: Investments
Positions Mentioned:
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