09/15/2010
December 3, 2017
09/03/2010
December 3, 2017

09/09/2010

Back home at last…


Kuppy,
Do the Mongolians need anything from outside the country to keep it humming along? Your site has my vote for the best investment site on the web.

Glad you enjoy the site.

They need lots of things from outside Mongolia to keep humming along. In particular, they need a whole lot of Caterpillar mining trucks because the country is built on multiple giant ore-bodies. In all seriousness, they need a lot of capital goods. They are rapidly trying to build out infrastructure to support all the mining that will be going on in five years.


Please explain to me why a company like Impact Silver(ISVLF) is one third off its recent highs and way off its historical highs. It just came out with a great earnings report, silver is near its all time high,and the management including the CEO, Fred Davidson, is outstanding.

Unfortunately, investing is not a physics equation. There are correlations between business fundamentals and share price, but they only work over long periods of time.

In the short run, most stocks trade based on how well the story is told. Fred Davidson is a great businessman, but he isn’t much of a promoter. I believe that my fund is the largest shareholder of his other company, Energold, and I can barely even track him down to ask a question. I imagine that smaller shareholders have even less success at hearing the story, much less learning about it if they do not know about it. Over time this will correct itself if he continues to build value. In the short run, it can certainly be frustrating. It is also what creates opportunity…


Kuppy, do you see much evidence of the mining activity in the area in which you currently are?
Do you list your investments anywhere ?
Thanks, sincerely for your wonderful travelogues. Your writing is very similar to that of Helene Meisler.

Glad you like the site. I used to read Helene when I used to subscribe to thestreet.com I always enjoyed her commentaries.

I run an investment partnership and for legal reasons cannot list my holdings. It also would not be fair to do that as my own investors pay me quite well for my efforts. I have a list of investments that I have written about on the website under ‘positions mentioned.’

I did not see much mining activity while in Mongolia. It’s a very big country and we mostly stuck to the area around Ulaanbaatar. We drove past the Centerra’s Boroo mine, but couldn’t see much from the road.