1. „No one has ever become rich through diversification“.
Invest in everything and diversify widely is a common advice from the financial industry. Don’t be fooled, because you won’t get rich by doing so. To diversify is to admit not knowing what you are doing. Or as Warren Buffett says: „Risk comes from not knowing what you are doing.“ If that is the case, rather not invest at all, educate yourself and sign up for our Private Placement List.
GMN Insight: We do exactly the opposite of diversification = strong concentration on a few, but carefully selected stocks. We know these stocks extremely well and sleep very well despite high capital investment. Currently we are holding two large portfolio positions.
2. Higher return = less risk
The common economic theory says that a higher return is only achieved by accepting more risk. However, in the commodity markets, other laws apply. In our opinion, the higher the possible return of individual stocks, the lower the risk of loss of a portfolio.
GMN Insight: If you are right about an investment that generates a 500% return, then you want to profit from it to the maximum and have real asset growth. It is no use if you then have only 5% of your portfolio invested. However, if you have 25% or more invested in a stock and it quintuples, then you have more than doubled the capital of your entire portfolio with just one investment.
3. Extreme patience and extreme determination
Not taking action is often the best option. Many investors overestimate doing versus doing nothing. Be extremely patient, rarely act, and when you do, act with extreme determination. The investor with the greatest amount of patience and emotional resilience to market fluctuations wins.
GMN Insight: During the holding periods of some of our most successful investments (e.g., Claude Resources, Atlantic Gold) of over 1000%, the stock prices of the companies went sideways for over two years at times. It takes a fundamental conviction for an investment, its potential and management to remain unperturbed by falling prices and, ideally, to re-buy.
4. Buy what nobody else buys
You will achieve the greatest returns if you buy asset classes/stocks that no one is currently interested in. As soon as these become en vogue, you are already positioned and a few % up. In short: When the mainstream media talks down an asset class or stock, you should look closer.
GMN Insight: From 2016–2019, hardly anyone cared about gold mining stocks. Mainstream financial media was focused on ETFs, Wirecard and tech stocks. We couldn’t think of a better situation and made very good money on Atlantic Gold or Kirkland Lake Gold even when gold prices were sideways. Currently, relatively few investors are interested in uranium stocks. We will therefore shortly introduce a Uranium Private Placement in order to be positioned early for rising uranium prices.
GMN Private Placement List
Using the Private Placements common in the commodity sector and our pre-selection, you will automatically meet the above criteria and have an edge over market participants who do not have access to Private Placements. Register here for our private placement list and invest together with us.