Step 1: See if there is any company news

Step 2: Evaluate if the news is positive or negative

Step 3: Guesstimate if the Risk/Reward has gotten better or worse depending on change in share PRICE

Step 4: Do something or do nothing

Step 5: Go back to doing something productive like reading a book, work or exercise instead of watching tickers all day

A longer term HODL story where the case will play out over several months or years means I only need to know that the case is intact and that the trend is positive.

Recent examples:

  • New Found Gold
    • More high-grade hits and extensions
  •  Golden Tag Resources
    • Making progress with some broad hits
  • Snowline Gold
    • Making a new virgin discovery
  • Novo Resources
    • Work being done on multiple fronts and the new Parnell prospect looks quite promising
  • District Metals
    • Keeps hitting mineralization at Tomtebo
  • Eloro Resources
    • Keeps hitting and keeps expanding the limits of Iska Iska

… Nothing here that has changed any case for the worse in my opinion. Snowline is the only one that has been somewhat rewarded for their very positive news. The rest are neutral or down. More importantly the long term cases for each and everyone is intact in my eyes. What is not priced in today will be priced at some point in the future. If Price goes down, typically due to gold/market sentiment, then it simply means that there will be more to revalue at some point in the future (all else equal). Expecting the market to fairly price news during one of the worst sentiment periods I have ever seen is asking a lot from the marginal investor. Oh and letting the share price as act as due diligence is missing the whole point of value investing.

You don’t harvest in the same season in which you sow.


Note: that I own shares of all companies mentioned and they are banner sponsors. Thus consider me biased and always make up your own opinion. This is not investment advice.

Best regards,

The Hedgeless Horseman


5 thoughts on “Value Investing/Trading: It’s Simple

  1. Paul Cernac says:

    Once again you have pointed out the obvious… I can’t tell you how much I appreciate these consistent writings on how to manage one’s investment timeline and emotions.

    1. Jlo says:

      Agree with Paul. Thanks a lot Erik! Helps a lot on the conviction. Every hit lately by any junior really does not get a lot of attention 🙁

  2. Claus Bøgh says:

    Totally agree. Great advice. Thx!

  3. Håkan says:

    Super, thanks .

  4. Rick says:

    Well said thanks!

Leave a Reply

Your email address will not be published. Required fields are marked *

Name *
Email *