Snapshot of a Portfolio I (Passively) Manage
I have a very high risk tolerance and am pretty active when it comes to my value trading. In contrast I am quite a bit more conservative when it comes to some friends/family portfolios which I manage. In these portfolios you will mostly find longer term bets that I don’t think needs too much attention and that I expect to return at least say 50% over a 12 month period (barring a sudden market crash etc). Below is a list of the current make up of one of said portfolios…
Before anyone else asks this portfolio can’t buy ASX listed stocks…
(Names in bold are >4% positions)
- Novo Resources (25.6%)
- Eloro Resources (7.1%)
- Eskay Mining (6.3%)
- Goliath Resources (5.7%)
- New Found Gold (4.7%)
- Lion One Metals (4.3%)
- Defiance Silver (4.0%)
- Kuya Silver
- Altamira Gold
- Idaho Champion
- Timberline Resources
- District Metals
- Rokmaster Resources
- Prosper Gold Corp
- Gold Mountain
- TriStar Gold
- FireFox Gold
- NuLegacy Gold
- Heatherdale Resources
- Inflection Resources
- Dolly Varden Silver
- Labrador Gold
- Magna Gold
- Irving Resources
- Signature Resources
- Cabral Gold
- Omai Gold Mines
- Maritime Resources
- Juggernaut Exploration
- … And I have bids in for a few more
The portfolio has returned 166.15% since 2019-01-01 while GDXJ has returned 58.70% over the same period.
Again, given I don’t really do much trading in this portfolio I am quite happy with the returns (sure beats the savings rates at least). What I think is important to point out is that almost none of the companies are companies that I would expect to ten bag any time soon. Like I have talked about a lot I am not really hunting for ten baggers per se. With that said I do like to see ten bagger potential of course. But the important point is that most of these stocks have been chosen based on what I expect will happen over the coming few years and not what will happen in the next month or what the next NR will say. I would also point out that none of the names are really bets on rising gold/silver prices. I selected these because of the internal merits of respective company and I hope/expect they will do well in a stagnant metals price environment (hope for the best but prepare for the worst type of thing).
Some questions to consider…
- Are the cases just built around the next NR? No
- Could I walk away from the portfolio for three months and not be too worried? Yes
- Is there a NR I can see in the short term that really breaks the cases? No
Slow and steady wins the race…
Note: This is not investment advice. All of the companies mentioned I own as well and many are banner sponsors. Always do your own due diligence and consider me biased. I might buy or sell shares at any point in time.
Erik – Appreciate this transparency and insights around portfolio construction. It’s helpful to hear someone else admit that how they manage their own money differs from how they help manage friends/family money. I am often asked by friends/family about what I am doing and holding and feel a little weird about telling them that what I am doing personally, I would not recommend for others as I tend to take very highly concentrated positions (Novo currently, previously Sandstorm). Thanks again for all you do on this site, Twitter and ceo.ca.
Hi, what is the reason you don’t hold any White rock in this portfolio? Seems Odd to me 😉
White Rock cannot be bought online with this broker so it’s limited to Canadian stocks.
Best regards
Impressive but is your portfolio limited to your sponsors.
Kingfisher Metals have potentially 3 districts. White Metal Resources are cheap and may have similar to NFG. Not to mention Labrador Gold with drilling starting. Also Tier One Silver with possibly major silver in Peru. I also hold Torq in Chile. I hold all these companies including Reyna Silver and Prime Mining… Ten bagger.
Allo Erik. TY for the informations Have a good day
Very welcome and the same to you Daniel!
Best regards
Hello Mr Eric,
I am writing this from Holland and read a lot of your comments especially on your website.
I also bought some compagnies that you recommend.
But i have a question. Did you have heard of excellon resources?
Do you want me to sent a comment? Very short will do.
I consider this stock to buy, but i doubt about it. i don’t see it as advice but pure as an opinion. I make my own decision.
Thank you very much
Wish you the best, Roelof Mink.
I have heard of Excellon and I think I owned it for a brief period of time some years ago. I haven’t kept myself up to date lately however. All I remember is that I thought there were better silver plays out there.
Best regards
Thanks, Erik. I own most of those too, and with some exploration luck we may see NuLegacy be a 10 bagger this year, perhaps even a 100 bagger.
We will need a great bit of luck but fingers are crossed! 🙂
Best regards
I notice that White Rock and White Gold are no longer on your list. Have you changed your mind about them? Thanks.
I cannot buy WRM or any aussie listed stock online. That portfolio is strictly made up of canadian listed plays. There are stocks I have yet to purchase or waiting for the right timing to switch. Given that it’s supposed to be a very passive portfolio for someone else I don’t want to burden myself by owning too many (just more work for me).
Best regards
Thanks for posting this Erik!
Also interested in why there is no mention of WRM.
Thank you
White Rock cannot be bought online with this broker so it’s limited to Canadian stocks.
Best regards
Strikepoint and White Rock are gone. Personally, if I am going to invest in explorers, I like to limit it to tiny market caps, 10-100 baggers, $5 million to $20 million market cap entry point, the best defense is a good offense, nothing reduces your chances of losing money overvall on your portfolio as much as a 50 bagger. And I am in a hurry, because I want to go for the double play and triple play through reinvestment before the bull market is over. take the proceeds of a ten bagger, reinvest in another 10 bagger, and you have a 100 bagger. Best investment of all right now is a three month ten bagger, lets you take the 10x proceeds and reinvest it before the bull market in gold/silver miners is over. So right now I am not in Lion One, Novo, New Found Gold, Defiance, because of a lack of immediate explosive percentage upside potential. Great companies, but they won’t 10 bag in 6 months, whereas Idaho Champion, Juggernaut, etc could 10 bag in a hurry, and let you reinvest while the bull market is still young. Novo makes more sense later in the bull market.
Hi George,
I respect your strategy and wish you good luck.
But for me this sounds more like roulette, rather than investing.
We are in a precious metals and commodity bull market, yet for many years to come.
The worst thing you can do, in my opinion, is to bet only on a few companies.
Talking about 10 baggers is easy, but have them in the personal brokerage account is a lot more difficult 🙂
Thank you for the insights to your approach. The portfolio is interesting. The role of silver versus gold in a portfolio is not often referred to, possibly because it is considered less important than other fundamental factors.
After holding Defiance for some years I gave up on it. Years ago Great Panther was an excellent trading vehicle, but like so many struggling silver companies branched into gold projects. Bear Creek was good also and last year Aftermath did well. You include Dolly Varden, one of the few purely silver companies, as is Impact which has steadily survived as a silver producer but is seen as a mom and pop outfit.
Novo has been a favourite for several years. It is hard to understand why it has been ignored in recent times which are supposed to be the sweet spot of the Lassonde curve.
I try to stick to value and not focus too much on the commodity itself. Silver juniors have IMHO had a speculative premium for a long time. Basically I felt like they were pricing in the current or higher price of silver while gold juniors were pricing in a gold price far below where it’s been trading. Lately I do think some of the silver juniors have gotten attractive though.
In 2015/2016 I owned Bear Creek and Great Panther. In fact they were some of my best performers during the Q1 rally of 2016. However, my investing strategy has changed a lot since then and I tend to avoid pure beta plays and potential alpha plays where I am not sure about the quality of management etc. I honestly dont think I own a single stock today which I owned back in 2015/2016.
Yes Novo is heavily discounted for multiple reasons and is why I love the R/R.
Best regards
Of the companies that you mention as examples in this longer hold type portfolio, if you were not yet invested in any of them, would they still be of interest to you as a purchase *at today’s current share prices*?
Thanks for your interesting articles.
What about Condor Resource?
Thanks Erik, Hey I was hoping you could share your reason for no longer holding Valore Metals, after you wrote such a glowing report on them about 1.5 years ago.