I apologize to Erik for spelling his name with a “c”. I knew better. Here is another thought. I have bought both Honey Badger and Empress before. Wednesday, I printed out the Forum Program for the upcoming MIF and they have two pages of presenters and some of each presenter’s favorite stocks or ideas. I went through the list and Chen Lin had Honey Badger on his list and Brien Lundin had Empress. Honey Badger is relatively new and has done some sampling that had some impressive #s…but most samplings do and don’t mean drilling will produce the same. Empress is relatively new in the royalty business but their potential seems to be growing with a few producers in their stable. It is hard to say how either of them will do in an up market, but since I owned them before and they are on the MIF list, I thought I would do some preemptive buying just in case they have something to add to their value at MIF. If not … then they may roll to something else that sounds good at MIF. I wouldn’t recommend anyone follow what I do, but rather listen to Cory and Shad and other investors on this site. I just find it interesting to read or hear what Errik, Shad and Cory and others are invested in and how they approach the markets. They are out there everyday in contact with some of the best in the business. I am often mowing the lawn or at the store.

Good thoughts on how you handle position sizing Lakedweller2. Also thanks for sharing some of the companies that have your attention in the PMs and Oil/Nat Gas sectors. Yes, as some of these stocks run and become multi-baggers, I may press the bets at a few points during pullbacks, but overall I personally let part of the position run, pulling some profits along the way, until they become to large a position weighting, and then I’ll pare it back down as the market cap continues to swell.

Thanks for the kind words towards Erik, Cory, and myself, but I assure you we all have our fair share of stinkers that have sold off hard in this environment, to go along side the winning stories that have done well. Yes, we get hit with so many stories every week, that it is easy to feel either overwhelmed or fall in love over and over again when getting pitched. One technique I use is refraining from buying the first few times I hear about a company or interview them or if other guests promote them as interesting opportunities, but do add them to a watchlist to closely monitor what is going on with those companies. I try to keep a vigilant eye on key press releases most days, but it is like trying to drink out of a firehose with so much news being published each morning that it is impossible to keep up with all of it.

I then play the game of “Would I rather hold stock A or stock B and why?” This helps me narrow down the watchlist to the companies I have on deck to buy, should things change either fundamentally or technically with the stocks I already hold. As a result, when I sell a stock or just trim back a position, I often have plenty of vetted companies to choose from on my watchlist to rotate those funds over to.

Another thing that helps me in my portfolio is that with the royalty stocks and producers and even the larger developers, they are more established and solid companies with intrinsic value and some of the “margin of safety” that Erik was talking about. As a result, I don’t really have to watch the news like a hawk, like one has to with earlier stage drill plays. The larger companies can just be traded based on technical moves, and I don’t have to know every single update (unless something major is going on that is changing their story like a key acquisition or takeover etc…)

People say “how can you follow all those companies?” This likely stems from them only being in very early-stage news-driven companies where things change every week or month. In contrast, if I’m in Hecla or Equinox or Sandstorm or Maverix, is there really that much that changes most days? No. Of course they can all have those days where key news drops that is significant, but that will show up in the price and volume of trading to signal me to go have a look at what is happening, and rarely could it have been anticipated in advance anyway, even if people studied it all day long. So while I try and keep tabs on all my positions, I generally just sort them each day for the larger performers (to the upside and downside) and then see if there is key news driving the move and then adjust accordingly. For the middle of the pack names, I just hold them and don’t need to obsess over each one every day.

There are also situations where I’m patiently waiting for a company to get taken over, or for the next drill program, or for a resource, or PEA/PFS/FS, or for their thesis to play out and those things take time. Case in point, Lion One recently. I’ve had a position in Lion One for a while, at one point it was much larger but I trimmed some back a while ago and just kept a core position in it, waiting for them to keep testing depth in the feeder zone at Tuvatu, and also waiting for them to eventually get into small-scale production. When that news dropped earlier this week, I was already in position and benefited by just having a core position in place, and now am debating on adding more on any future weakness since the results were so impressive. I didn’t need to look at it and pet the stock every day saying “come on and grow little buddy.” I held it waiting for the thesis to pan out like it seemed it could, and now it has. There are plenty of stocks just like that where there is a reason and thesis behind why I picked up shares, and often a wait (sometimes a long wait) to see if the company will execute on their plan. Some days I wake up an notice a big move or sometimes when busy it’s at the end of the day, and I’ll then go do some research on why it was moving, but since I was in position, it ultimately didn’t matter why, but rather, just that I had a position in place to capture outsized gains. That’s my point with the mantra “you gotta be in it to win it.” Similar things happened for me in many base metals and battery metals stocks as well, where I got into position, waited and then when the big pops came I did another deep dive as to what may be happening, is it fleeting or can it be sustained, what comes next, how does the valuation look, etc…

Anyway – good chat here on portfolio management and good trading to you sir!

Ex:
Thanks for your great thoughts.

Yes, great declines do happen when the general market falls but that does not negate the message of the chart(s) I showed you. The HUI and XAU also more than doubled in 2008-09 while SPX fell for several more months. Of course the big gains are the result of so many getting their expectations wrong.

Matthew, thank you for any assistance you give.