What can a 90 year-old woman from Nebraska teach us about finding profit opportunities in today’s downtrodden mining sector? Let me tell you a story. In 1983, Mrs. Rose Blumkin — nonagenarian proprietor of Nebraska Furniture Mart — was approached by a local investment fund manager who was interested in putting money into her family’s business. After talking with “Mrs. B” and observing her Herculean managerial style about the store, the buyer handed her a check for $55 million. No audit of the books, check of inventory, or verification of property titles. He saw all the qualities he liked in… Read More

What can a 90 year-old woman from Nebraska teach us about finding profit opportunities in today’s downtrodden mining sector? Let me tell you a story. In 1983, Mrs. Rose Blumkin — nonagenarian proprietor of Nebraska Furniture Mart — was approached by a local investment fund manager who was interested in putting money into her family’s business. After talking with “Mrs. B” and observing her Herculean managerial style about the store, the buyer handed her a check for $55 million. No audit of the books, check of inventory, or verification of property titles. He saw all the qualities he liked in Mrs. B — and was willing to pay a lot based on a few key observations and a handshake. That man was Warren Buffett. I’ve learned a lot by studying his examples, like the one above, and applying them to natural resources investing.  This “be like Warren” message is an important one for my Junior Resource Advisor readers. That’s because investing in mining — and particularly its highest-potential-return sub-sector, exploration and development — is radically different from conventional investing. #-ad_banner-#Unlike banks or manufacturers, mineral exploration and development companies have no revenue or cash flow. I’ve sat in meetings with Wall… Read More

If I had to point to a segment of the natural resources sector with the lowest investor sentiment right now, it might well be coal.  Coal is thought of as antiquated and brutish, a relic that will soon be excised from the ranks of global energy markets.  It’s easy to see why. On the surface, there’s a lot to dislike about coal. The biggest strike against the industry is environmental. This month, the news has been rife with stories about record air pollution nearly shutting down a number of cities in northern China.  Whether it’s for these environmental reasons —… Read More

If I had to point to a segment of the natural resources sector with the lowest investor sentiment right now, it might well be coal.  Coal is thought of as antiquated and brutish, a relic that will soon be excised from the ranks of global energy markets.  It’s easy to see why. On the surface, there’s a lot to dislike about coal. The biggest strike against the industry is environmental. This month, the news has been rife with stories about record air pollution nearly shutting down a number of cities in northern China.  Whether it’s for these environmental reasons — or simply a matter of economics — there’s a sense that the world is turning away from coal.  #-ad_banner-#​Since 2009, China has been the driving force in global coal markets. Coal imports in that country exploded during the past five years, jumping to a peak of 35 million metric tons per month in December 2012. That’s a 1,500% increase from 2008 levels. But growth in China’s coal imports has stalled. Although imports are holding at a relatively high level, the days of explosive increases in import demand appear to have passed.  The sense then is that we may… Read More

The past year has not been great — generally speaking — for mining stocks.  Just look at the chart of the Amex Gold Bugs Index below — comprising some of the biggest names in the precious metals mining space. The index has fallen nearly 49% so far in 2013.      Most investors cringe when they look at a chart like this. But many of the savvy industry experts I know in Canada love seeing these big drops, especially when we’re nearing the end of the calendar year.  #-ad_banner-#You see, I’ve worked in the mining and oil and gas sectors… Read More

The past year has not been great — generally speaking — for mining stocks.  Just look at the chart of the Amex Gold Bugs Index below — comprising some of the biggest names in the precious metals mining space. The index has fallen nearly 49% so far in 2013.      Most investors cringe when they look at a chart like this. But many of the savvy industry experts I know in Canada love seeing these big drops, especially when we’re nearing the end of the calendar year.  #-ad_banner-#You see, I’ve worked in the mining and oil and gas sectors for more than a decade, traveling as far as Russia, Chile and Madagascar to inspect natural resource projects. But these days, I call Canada home. And, as editor of StreetAuthority’s premium advisory, Junior Resource Advisor, my job is to provide readers with investment opportunities they won’t find from analysts who sit at a desk all day. And I’m excited when I see a chart like this for one simple reason. It has to do with a “quirk” in the way the Canadian tax system works — a quirk that lets watchful investors buy good resource stocks at double-digit discounts within… Read More

This may come at a surprise to many of you… But I’ve been looking at trimming down my portfolio holdings in the oil and gas sector over the past couple of months. Why would I do that when every week a new report comes out claiming the United States is… Read More

It’s been all the rage the past few years. And with good reason… This new technology has literally reshaped the world energy market and put America back on the oil and natural gas map. Of course, I… Read More

Many investors think commodities are too risky. It makes sense when you look at the history… Before the 2008 recession, oil was nearing $150 a barrel. Then it fell to the rock-bottom price of $35. Copper approached $1.20 per pound from a high of… Read More

A lot of corporate managers call themselves “idea people.” But even the best ideas are hard to value. After all, how much does a well-prepared business strategy or a dynamite marketing concept really add to a company’s bottom line? There’s only one sector I’m aware of where ideas can be immediately and precisely valued in dollars and cents. In fact, in this business, clients directly purchase ideas — often at six- or seven-figure price tags. It sounds too good to be… Read More

A lot of corporate managers call themselves “idea people.” But even the best ideas are hard to value. After all, how much does a well-prepared business strategy or a dynamite marketing concept really add to a company’s bottom line? There’s only one sector I’m aware of where ideas can be immediately and precisely valued in dollars and cents. In fact, in this business, clients directly purchase ideas — often at six- or seven-figure price tags. It sounds too good to be true, I know. All the more so given that these ideas can be generated for almost no cost — offering a return on investment that’s mathematically close to infinite. I’m not talking about high-priced business management consulting or branding services. Businesses in those sectors usually require substantial overhead expenses in order to create and sell their concepts. The industry I’m talking about is much simpler than that. Million-dollar ideas in this sector can quite literally be made by a single… Read More