Tom Beck of Portfolio Wealth Global shares his strategy for investing in commodities.
For close to five years, investors, experts and analysts have been predicting that commodities, as a group, are going nowhere.
Still, millions of respected, intelligent investors seek to invest in minerals and resources because of one important reason: one solid position can fund a decade worth of retirement.
Warren Buffett, whom I personally regard as the absolute best investor the world has ever known, was even duped into buying oil stocks because he fell into the “Peak Oil” theory, which was popular prior to the invention of “fracking.”
This reminds me of the famous 1890 London Futurist experiment, where the most highly regarded scientists of Oxford were asked to envision London 40 years into the future, and the prediction was sealed until 1930, when it was finally opened and read.
Their theory was that London would be impossible to live in because of horse manure and diseases caused by sanitation.
They couldn’t possibly forecast that within the decade after their brainstorming, the automobile would be invented.
Today, London is the most expensive and sought-after location of the ultra-rich, as well as a tourist hub.
The bottom line is that commodities are unpredictable, and they often move inversely to fundamentals, research and common sense.
Even worse, when they do change from bust to boom and vice versa, the discipline it takes to notice the trend change and the precision involved with investing and timing it is sheer luck.
In 2016, Portfolio Wealth Global, the highest-ranked free financial publication of the year, profiled just three mining companies.
I believe it was a combination of timing, months of research and, ultimately, ridiculously undervalued stocks that allowed you to profit from two trades that gained 103.4% on average, and from one stock that gained 312%.
Here are the facts …read more