Since you cannot share with us any of your favorite gold stocks, can you tell us what you look for in a gold stock(s)?

“There are many things that I look for in a company and for the most part that information is available. I read companies’ news releases and updates  and many independent  research services The problem is at times interpreting  and coming to a conclusion. And  it is difficult to interpret the results at times. ……….and even after doing all the analysis, I am often wrong.”

What is your percentage of success in gold sector type investments?                                                                                                       ‘I estimate that about 30% to 50%, sometimes better, sometimes worse. From time to time I will get a seven to ten times return but that is rare and generally takes a lot of time. The large returns have made up for the failures. I find that if I invest when a stock(s) is selling at a very low price after a sharp decline when it works, the returns have been very good.”

Have people ever asked you to suggest or help them in choosing gold or mining stocks?                                                                         “Yes they have but I do not do it,  it is difficult enough just investing for myself and my family. Most gold mining stock investors are their own worst enemies and I do not like to explain myself to anyone  whether I am right or wrong.”

What do you mean by “’own worst enemies”?                                                                                                                                                  “ If I find a company is undervalued and later after investing in it, it goes down in price, I will buy more   which few people  will consider doing. That is as long as the fundamental  value that I found in the first place is still there.  It happens often.”

What percentage of gold analysts’ recommendations are worth reading?                                                                                                “Many are but the problem is that their recommendations may be good at the time the recommendation  is released, but by the time I see them, many have already moved up in price so it is not timely.“

What places do you favor for your  own gold and mining investments?                                                                                                    “I’ve invested all over the world in mining stocks having started with South African companies years ago, but now I invest primarily in Canada as I am uncomfortable with the political risk in some countries . The tax credits in Quebec make it very attractive.”

What is an overlooked factor that you do not like?                                                                                                                                  “There are several but I do not like to see share dilution which too many juniors do at far  too low prices. I realize that sometimes dilution is necessary but I don’t like it and others I respect don’t like it either.”

What don’t investors understand?                                                                                                                                                             “That gold exploration is challenging and expensive and finding deposits with good potential takes time, money and luck.

 What disappoints you today?                                                                                                                                                                          The manipulation that goes on in gold and getting adequate information and research on some interesting companies.  There is not enough in-depth research available on most gold stocks, particularly Juniors.

Do you like to see institutional investors in your stocks?

No not really,  It depends what institutions and whether they are investors or traders. I do not like to see hedge funds or traders in any stocks that I own. In the large cap gold companies, it doesn’t matter but in the smaller companies, they cannot handle heavy volume.

What is your favorite size in gold stocks, Juniors, mid-cap or large cap?

“In whatever group I can find value and there are always undervalued stocks in each group. However in the Junior sector, there is much greater risk but they do offer the highest potential return with any exploration success due to their leverage.”

What is your forecast for gold? I think that many gold stocks are extremely undervalued but while I do think we are in a bottoming area, I can’t time it. If you guys know anyone who can give me the exact timimg please tell me.

 

*** I want to mention that this “very succesful investor” is and has been quite wealthy so he really has no need for short term results. Yes, he can just sit and wait. He has the luxury of not facing any performance schedule or requirements.