Erik Wetterling – Why Now Is The Time To Be An Asset Hoarder In Precious Metals Stocks
Erik Wetterling, Founder of The Hedgeless Horseman, joins us for a discussion on why he has increased the number of positions within his portfolio, and why he has become and asset hoarder of precious metals stocks. We review the unique opportunity currently available in the depressed valuations seen across the junior mining sector, and the ability to have great risk/reward upside potential and yet still simultaneously have diversification of companies and jurisdictions.
Erik shares how he approaches the position sizing and weightings of different companies within his portfolio. He outlines that his largest positions also have the biggest margin of safety as developers with known resources in the ground, then the medium sized positions are explorers that have made a discovery and are expanding upon it, and finally the smallest positions are in the true grassroots drill plays hoping to make a new discovery.
We wrap up with getting some examples of each category or stage of stock in Erik’s portfolio and why he likes Cabral Gold (TSX.V: CBR), Inflection Resources (CSE: AUCU), and Pacific Ridge Exploration (TSX.V: PEX).
+1
ditto…………. plus 24 k………
I love the idea of being an “asset hoarder”. My portfolio consists mainly of dividend paying value stocks (including some gold/silver stocks like AEM, KL, WPM, FNV…) which I’d like to keep forever, but I also keep a minimum of 10% in junior miners (currently at 9%). This strategy works for me. When the markets are down, the junior miners can actually perform really well – sometimes becoming major holdings (e.g. WPM, bought at issue for $.79, consolidated 10 for 1 & now around $50.). I keep total of all precious metals at <20%. When the markets are performing normally, I reduce the junior minors to 1-5%.
Entertaining and a likable guy, but all I hear is C H A O S
It’s also a good time to be a Hoarder of PHY . Gold & Silver …. Thank me later for the tip … lol