Investor or Speculator?
Delivering warrant education to expandTHE KNOWLEDGE OF INVESTORS Are You an Investor or Speculator?
We encourage you to determine your investment philosophy as to whether you are an ‘investor’ or ‘speculator’. Basically this involves your investment time horizon (in days, months or years) and your level of risk. As to risk, we are of the opinion that long-term warrants which we would define as having a remaining life of 2 years or more, have no more risk that purchasing the common shares of the same company and thus we classify long-term warrants as investments.
There is no reason why a person who considers himself to be a conservative investor should not consider long-term warrants as a viable means to his investment goals.
Short-Term and Aggressive Investors
Warrants offer incredible opportunities for those investors seeking short-term gains by focusing on those warrants expiring within 12 months. The average investor must be cautioned to the additional risk involved in the short-term warrants but incredible gains have been made by many investors in warrants of Peru Copper, Northgate Minerals and Blue Pearl. Incredible gains of 1,000s of percent have been achieved. Perhaps YOU can pick the next winner out of our Warrant Database!
Option investors should consider the possibilities of including warrants in their investment strategies along with call and put options and LEAPS. More opportunities, more possibilities, more flexibility = greater potential profits.
Long-Term Investors
For those investors with a longer term horizon of the precious metals and energy markets there are many warrants trading which have a remaining life until expiration of 3 years, 4 years and more.
You determine your favorite mining stock which has warrants trading will a long-term life and thus establish a long-term position and do not concern yourself with the daily, weekly or even monthly movements in the markets. Relax, enjoy the ride, and sleep well at night knowing you are positioned with the long-term trend.
In each of the last several years at least one warrant has performed incredibly well._____________________ Footnote:
Much of our information presented on our website comes from our collective knowledge of over 30 years of investing. However, we want to acknowledge some of the professionals whose writings back in the 1960’s and 1970’s are timeless and are as relevant in today’s markets as they were back then. We have taken the liberty in some cases to utilize their information for the purpose of explaining warrants to our readers.
~Sidney Fried, RHM Associates and Herbert B. Mayo, Ph.D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A. Overview
B. Basic definition of a warrant
C. Background and history of warrants
D. The Most Important Decision (the company)
E. Why investors should consider warrants – leverage
F. Are you an ‘Investor’ or a ‘Speculator’
G. Portfolio Allocation for warrants
H. Other professionals talking about warrants(Adam Hamilton – Frank Holmes – Martin Weiss)