Howard Flinker has been managing money for a long time and is always on the lookout for cyclical opportunities. Right now gold and silver companies are on his radar. Increasing demand from Asia and shrinking supply make this a prime time to focus on precious metals. In this interview with The Gold Report, Flinker details three companies in his portfolio poised to deliver outsized returns, including one that is bitcoin for gold.
The Gold Report: Would you tell us a little about your money management company?
Howard Flinker: I’ve been in the business a long time and have a small money management firm. My approach is to exclude technology, first of all, and then everything else is essentially based on Graham & Dodd, long or short. On the long side, I want companies that have good operational statistics and records and cheap prices, and on the short side, expensive prices and lousy operational records.
I start in both cases with a contrary opinion. If almost everybody likes it, I ask myself, what can go wrong? I see if I can find it. And if I can find evidence to answer the question, I’ll sell it short.
On the long side, when nearly everybody dislikes it, I say, OK, things will get better. Let me see if I can find signs when they begin to get better commercially. And on the long side, too, sometimes I say, OK, they’re not making any money. What are the assets worth? Can I figure them out?
I like the cyclical wind at my back. In the case of gold and silver, I know there is rising demand in China and India (along with shrinking supply). In May, Chinese, Indian and Turkish demand took off again. On the short side, I want to see oversupply. …read more