Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins us to break down his strategies around going after 10-bagger returns in junior mining stocks and notes that it is a difficult process and not an event. We discuss investor psychology around what they claim they want and how they actually handle extreme volatility in the sector in practice.
We get into some of the nuances around pre-discovery speculations versus post-discovery speculations. He points out that it is actually better to press one’s bets when a company is onto a legit discovery, versus taking profits right at the point where the assay results start proving a potentially larger thesis. Erik also discards many of the market mantras and trading rules like “selling half on a double” “or take profits along the way” and breaks down how that math doesn’t work if you really want a multi-fold return in a gold, silver, or copper exploration stock to bail out a number of other speculative positions in explorers that statistically aren’t going to work out.
Three examples of junior resource companies Erik flagged that actually became true 10-baggers for some investors are New Found Gold (NFG.V), Snowline Gold (SGD.V), and more recently Hercules Silver (BIG.V).
*In full disclosure, the companies mentioned by Erik in this interview include personal positions in his portfolio, and they may also be site sponsors on The Hedgeless Horseman website at the time of this recording.
.