What happened to the good old day's when investors actually did their homework
and researched new potential investment opportunities? I am talking about investing
in individual companies.
Let's take the natural resource sector as an example. You could invest in
many different ETF's giving you a position in a basket of securities. But,
and this is a big issue with us, investors will never achieve the big gains
of 100s and 1000s of percent returns with any ETF. How much are you making
with your ETF's?
ETF's, Exchange Traded Funds, have exploded in popularity particularly after
the market meltdown in 2008. Many investors are still scared and are shying
away from individual securities because of their perceived risk. The ETF's
give investor's diversification with a basket of securities. The basket may
be a stock sector, a commodity class or mixture of commodities, currency of
a country or region; or stocks of an entire continent or grouping of countries.
In other words, you can buy an ETF on basically anything.
With an ETF, you will be investing with companies in the same sector. Some
of those companies with outperform and some will underperform leaving you with
an average performance on your ETF. Why not perform your own research and focus
on those outperforming companies?
As advantageous and convenient as the ETF is, a value investor will experience
higher profits with the tried-and-true methods of stock selection. Seek those
companies with great management, excellent properties, mining friendly countries,
etc. It's is not really that difficult.
If you are content with modest returns on your investments, go for it. Frankly,
we want more and are prepared to take 'some risk' in order to achieve above
average gains. For those investors in the natural resource sector, perhaps
you should consider allocating a minimum of 10% to 20% back into individual
shares? Something to think about!
We would acknowledge that some of the ETF's make some sense, like the currency
ETF's, Country specific, i.e., China or Brazil ETF's and some others. We can
also see using ETF's as a hedging vehicle as you can short the ETF or perhaps
even purchase puts or calls on them.
But as a general rule, we would encourage investors to get back to the
basics and make your own decisions.
In the natural resource sector common shares and many long-term warrants on
those shares have generated monster gains recently. Most investors are missing
out because they are taking the sissy approach and investing in ETF's to reduce
their risk but also giving up these significant gains that could change your
lifestyle.
Our current opinion is that gold has bottomed and the markets are heading
substantially higher very soon. The common shares and long-term warrants trading
on those shares will explode in value and this is where we want to be. What
about you?
We invite readers to join us in San Francisco, California at the Hard Assets
Conference on November 21 and 22. We will have a 2 Hour workshop covering our
entire portfolio, insider trading and our great warrant database. Click
here for complete details.
For those readers unfamiliar with our services:
PreciousMetalsWarrants.com provides:
- An online database for all warrants trading on the natural
resource companies in the United States and Canada. Our database is the most
comprehensive database that you will find.
- In addition for our Gold Subscribers we provide:
- "A Look Over My Shoulder" - This is my entire personal
portfolio and I provide an audio update each Thursday evening and emails
as I buy or sell securities or warrants. Each subscriber can decide whether
to follow me but this is your decision and we suggest that subscribers
do their own due diligence before buying any securities.
- Insiders Trading Data: We track the insider trading on
the Canadian Securities and issue BUY and SELL Alerts as we deem necessary.
We have a great track record of approximately 100% gains on all closed
trades.
We encourage all readers to sign up for our free
weekly email.
