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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@AlanJust looking at hunting some bargains. Currently looking into $SBGL. Looks crazy cheap after dropping from over $20 to close to $5 right now. They added a shed load of shares recently to purchase stillwater mining. Over 8% yield. Just looking into management. Its generating lots of cash. It's being added to the GDXJ also. If anyone has any info, I'd be glad to hear.
@Alan@jayfire - I thought I'd just say I listened you your video above. Respect to your goal mate. I think it's important to set an amount you know will be meaningful to you and once you achieve it, you enjoy actually achieving that goal and maybe take a step back. Looks like you got into this space at a perfect time and over the last 2 years you have done very well. With ups and downs within that 2 years of cours! As your blog posts talks about, it looks like you got in at bottoms in quite a few different sectors. Do you think taking a step back like this when you achieve your goal is the leading factor in you being able to choose these bottoms? Or a function of luck? Or it something new you are trying? Or have you just had enough with the market?
@Jayfire@Alan thanks for the comment. In regards to picking out bottoms, I try and keep things as simple as I can and focus primarily on macro charts. I mean we all know that no asset class goes up forever and ever, so it's important to take a step back and look at the bigger picture and I guess try and be as objective as we can... For myself, when it comes to investing I'm naturally a cynic... If anything I own goes up too far too fast (e.g. real estate, general equities, etc.), my brain just switches to defensive/conservative mode and I try to take a timeout and/or go looking for something else that's trading at much lower/cheaper historical valuations... Right now, it's pretty obvious to me that precious metals (especially silver) is much closer to the bottom than the top... 2015/2016 looked like the perfect time to start getting interested in the sector and these mining stocks so that's when I started from scratch and digging into research. The important thing is to be open-minded and operate under the premise that you don't know jack shit... otherwise you close the door on many opportunities and possibilities. I guess that's the most important thing I've picked up over the years.
@Alan@jayfire- Yeah I totally get that reasoning. Yeah I approach it in a similar way and assume 'nobody knows anything' until I'm proven wrong. And I don't know anything either. But you've got to take a step back and assess things objectively, which is hard to when assessing something we have our own money in. Your more likely to believe in something when you have aligned interests.
@Jayfire@Alan Yeah, definitely not easy to do unless you train yourself to approach investing from the point of view of a cynic instead of as an optimist... Right now I could give you a million reasons why investing in Bay Area real estate is a bad idea... which is why I stopped playing that game even though like any addiction it was hard to give up... especially when you're up over 500% and prices keep going in one direction up up and up... So, I just try and take the same approach across all asset classes... Someday in the future I hope to be ripping on how overvalued the precious metals and these mining stocks are... after ya'll have made your 500%+ returns of course... :)
@AlanSo just about to start reading the next section in the book #themoneygame by #adamsmith. It is a brilliant book, so far. Fantastically written with some great thought-provoking stories and ideas about the game we are all involved with.....money! @miningBookGuy has been recommending this book for a while and did a video here https://www.youtube.com/watch?v=mJHrxHLZw-o+ A quote from my notes -'Find smart people, because if you can do that, you can forget a lot of the other rules'
@FundamentalAnalysis@Alan Awesome links, got me more interested in platinum once again. I was borderline giving up on that metal, apart from my stake in $IVN. The EMP idea re: Mining is seriously DEFLATIONARY should technology advance to such a stage and be utilised in mining. Also good points about tesla....
@AlanFinished #themoneygame@miningbookguy. I've just finished writing up my notes and basic thoughts I had from this great book. Certainly made me think about how I view things in regards to money. I should have a post on this tomorrow which I will post in here. It's one of those books that deserves a 2nd read as it can be very reflective and I imagine will continue adding value over years.
@FundamentalAnalysis@Alan Thanks, its a good idea writing notes from books to form an article.... this part stuck out but I'd like to add a caveat that being when a sector becomes important, research analysts/NLW's etc... once again enter the space...they then produce reports and sell ideas to other firms who bid up prices to where fundamentals are...hence why mid/large caps tend to be efficiently priced, so fundamentals don't matter in the current environment as much until they eventually do, a company going broke will go down, and a stellar performer - based on actual results not sentiment see ($FNV past 5years) goes up sentiment then takes over fundamentals during a bull/bear market.......... "As much as we like to believe that things are based on the intrinsic value of something, it’s actually based on the value other individuals place on that something. The net asset value, for example, is very important, but we must realise that many other people are not looking at net asset values. They go with the crowd and how they feel at the time. They follow the narrative and not the arithmetic. However, these volatile swings are very useful to the speculator that wishes to generate the money he or she believes they need to live the life they want. We all have a different amount that we feel we need and want, but we find when we reach that amount and finish the game, a new one turns up in its place."
@MiningBookGuy@alan - great to see your new article this morning!
Some quick comments:
1. I believe the book was originally written in 1967. This is important because it was right in the middle of the 'go-go 60s', and it really gives you a sense of that time period. But to your point, I believe the book was still VERY popular in the 1970s...and for whatever reason, is not well known at all now.
2. Your last paragraph is excellent, and I will highlight it here! :)
"One thing that this book made me think about was the importance of knowing yourself. If you can’t know yourself, how can you understand others? And if you can’t understand others, you are pretty limited in thinking about ‘The Money Game’." #TheMoneyGame#books#mbgtrends
@AlanAppreciate the kind words and feedback. Yeah I did consider putting in the 1st edition's date. Not sure why I didn't in the end! But as you say @miningbookguy, if people can somehow relate to that time period, it would certainly give the book more context. Nice one.
@MiningBookGuy@Alan - my pleasure! and it's funny i was going to release this #TheZurichAxioms video today, as I find it very complementary to #TheMoneyGame. I love all these books discussing the 1960s/1970s investing/trading environment, and the lessons learned from that era! :)
@AlanCheers @Mick. Just watched your video @miningbookguy. Great stuff. I need to read this book #TheZurichAxioms. I love looking at what people believe is the difference between investing and speculating. I still think the best book on speculating and investing are #dougCasey. The first for speculating is #crisisinvesting and the 90's one. The investing one is called #Strategicinvesting. These were my 'bread and butter'along with #harrybrowne early books. They are some on the best books I've read on this topic.
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@MiningBookGuy@RocketRed - I don't read books to show me how to trade. I learn about that the same way you do, via trial-and-error
I read books to learn insights like those shared by @Alan in his great article the other day on #TheMoneyGame@alan/-themoneygame
I read books for a lot of other reasons too. The fact that you don't read books actually encourages me to read them more! The less other people read on average, the more powerful it is to do so (at least that's what I believe)
@KevinS@alan nice first article. Congrats. I like investing as on top of making a few quid it really is a way of getting to 'know onself' better like ur article suggests. Especially times such now in gold market...bricking it while catching knives! :)
@AlanThanks @KevinS. Hopefully there will be more to come. My plan is to review the books and distill the wisdom in them that I wish I had known when I started this journey. @miningbookguy- cheers for the shout out. Loved your comment 'I read books for a lot of other reasons too. The fact that you don't read books actually encourages me to read them more! The less other people read on average, the more powerful it is to do so (at least that's what I believe)' - I totally agree!
@Alan@FundamentalAnalysis- not heard any news regarding the plunge in $SII. Another example of how the price of something and the underlying business are two separate issues. I bought some yesterday at 2.12 and I thought that was a good price!
@FundamentalAnalysis@Alan Yeh its crazy, the business model is changing a little, however but I think its for the better. In terms of safety. The mutual funds involved with non-resources were actually underperforming, so saw them as a future drag. Commodities is a better place to be. I bought some today. $SII
@FundamentalAnalysis@Alan Yeh, its capital structure is as if the company is in a financial crisis, they just went through a brutal bear market in 2011-2015, transformed the business twice....once by diversifying out of resources, and then more recently re-focusing on natural resources but more precious metals and changing tactics to use a more defensive passive approach. I.e management of precious metals (which is basically easy money IMO as people buy and ignore it, no one cares about their physical precious metals) $SII#MBGTRENDS
@AlanI was going over some old notes and came across these questions and ideas: 3 Decisions to make as an Investor 1) Which assets to hold? 2) What proportions? 3) When to change those? / 7 Rules of Asset Allocation 1) Have a cash buffer 2) Inflation beater 3) Withstand currency depreciation 4) Diversified 5) Buy bargains 6) No more than 3% of overall capital in one stock 7) Have 'off-market assets' like gold, property and own business. I found them useful to think about.
@Onlyflaws@Alan Haha, I was laughing when I reflected the asset allocation rules to my own holdings. Good reminder to stop and consider things carefully. 4 and 6 made me smile. Im currently very heavy on PM and base metals and very little diversification to other sectors. It either works perfectly or blows up to my face. Although I think that the base metals, especially zinc, could go up while PMs correct. In my head it almost feels like a hedge. :) Also, all of my holdings are more than 3% of my PF. What can I say, I like being ballz to the Walls. The others I got covered. Good rules, cheers.