My favourite uranium story is @RealRickRule financing paladin at 10c a share in 1998.
Paladin then started a slow decline 9c, 8c, 7c, 6c, all the way down to 1c in 2003.
Paladin was running into financial issues and Rick had to decide whether to invest again at 90% discount
Paladin then started a slow decline 9c, 8c, 7c, 6c, all the way down to 1c in 2003.
Paladin was running into financial issues and Rick had to decide whether to invest again at 90% discount
After rechecking his thesis and without his investors who had passed on this deal. Rick decided to back the truck up again at 1c.
Rick still had to wait another 3 years to be proven correct.
But boy was it worth the wait!
It's a great story with a few takeaways for me
Rick still had to wait another 3 years to be proven correct.
But boy was it worth the wait!
It's a great story with a few takeaways for me
1. Volatility is the Price You Pay for Returns -Bill Miller
Rick certainly paid this price with a 90% drawdown
Which is the opposite of the investing today where everyone loves low-vol ETFs and funds
2. Ricks own quote investing in things that are a 'When' not a 'If' situation
Rick certainly paid this price with a 90% drawdown
Which is the opposite of the investing today where everyone loves low-vol ETFs and funds
2. Ricks own quote investing in things that are a 'When' not a 'If' situation
Uranium is required for the operation of nuclear and there is no substitute to run them. While the price was below the cost of production hence a 'When' not "If' situation.
3.Lastly and especially relevant to uranium sector and perhaps coal sector right now;
3.Lastly and especially relevant to uranium sector and perhaps coal sector right now;
“The necessary condition for the existence of bargains is that perception has to be considerably worse than reality. That means the best opportunities are usually found among things most others won’t do. After all, if everyone feels good about something and is glad to join in,
it won’t be bargain-priced.” “A hugely profitable investment that doesn’t begin with discomfort is usually an oxymoron.”
-Howard Marks
-Howard Marks
