It’s been an exciting couple of weeks.  As recently discussed, the resources world turned topsy-turvy in the wake of the “leave” vote in the U.K. Brexit referendum. Gold soared (and gold stocks too), and almost everything else tanked.  #-ad_banner-# And since then, the situation has grown all the more interesting.  All indications are that the initial panic over the Brexit vote was largely overdone. The Dow Jones Industrial Average has recovered about 80% of the losses it suffered in the two-day panic following the Brexit news.  That rebound has extended to most of the commodities sector. This is a development… Read More

It’s been an exciting couple of weeks.  As recently discussed, the resources world turned topsy-turvy in the wake of the “leave” vote in the U.K. Brexit referendum. Gold soared (and gold stocks too), and almost everything else tanked.  #-ad_banner-# And since then, the situation has grown all the more interesting.  All indications are that the initial panic over the Brexit vote was largely overdone. The Dow Jones Industrial Average has recovered about 80% of the losses it suffered in the two-day panic following the Brexit news.  That rebound has extended to most of the commodities sector. This is a development I thought we’d see. Investments like oil and copper have overcome investor fears and are staging a strong bounce off post-Brexit lows.  Copper, for example, had plunged as low as $2.07 per pound on the morning of June 24. But the metal has stormed back more than 7% since then, currently trading at $2.22 per pound as I write.  Copper is now trading at its highest level in nearly two months That’s a strong sign that fears about lost demand in the face of the Brexit vote were overdone. And it makes sense, given that the actual process of the… Read More

In my day job as a geologist, I’ve been fortunate to be involved with a number of resource ventures over the years. I spend a lot of time in the wilderness looking for big mineral deposits and oil and gas fields. The thing is, most geologists are wildly optimistic — almost romantically so. They’re dreamers, and the idea of a big find keeps them going. But as an analyst, I know that in order to make truly outsized gains in this sector, you need to be selective. #-ad_banner-#The junior resource business holds some of the greatest potential… Read More

In my day job as a geologist, I’ve been fortunate to be involved with a number of resource ventures over the years. I spend a lot of time in the wilderness looking for big mineral deposits and oil and gas fields. The thing is, most geologists are wildly optimistic — almost romantically so. They’re dreamers, and the idea of a big find keeps them going. But as an analyst, I know that in order to make truly outsized gains in this sector, you need to be selective. #-ad_banner-#The junior resource business holds some of the greatest potential for wealth creation in any industry on the planet. Shareholders of small firms can easily reap hundreds or even thousands of percent returns in the event of a successful discovery by these companies. For example, October 2014 was an historic month for the natural resources sector. We witnessed an incredible event that underscored just how powerful wealth creation can be when it comes to finding, developing and producing commodities. I’m talking about the birth of a new mine. The operation in question is the Eleonore gold mine in… Read More

Have you ever wondered why the United States is so different from any other country, or why so many of the products used around the world were invented here? Go anywhere on earth, and you’ll see people using smartphones. Where did the smartphone originally come from? America. It was originally developed by IBM in Florida. #-ad_banner-#Likewise, you’ll find Internet access everywhere, which was also invented in the United States. In fact, go to any large city in the developed world, and you can watch a Hollywood movie, hear American music and find a Starbucks. Call it American ingenuity, but the… Read More

Have you ever wondered why the United States is so different from any other country, or why so many of the products used around the world were invented here? Go anywhere on earth, and you’ll see people using smartphones. Where did the smartphone originally come from? America. It was originally developed by IBM in Florida. #-ad_banner-#Likewise, you’ll find Internet access everywhere, which was also invented in the United States. In fact, go to any large city in the developed world, and you can watch a Hollywood movie, hear American music and find a Starbucks. Call it American ingenuity, but the things we come up with are inevitably sought after by people in nearly every corner of the world. Even where the governments don’t like us — like in Russia and Iran. This has gone on throughout history. The list is endless: the cotton gin, the telegraph, the telephone, the light bulb, the airplane. You get the picture. I’m not saying this to be patriotic. I say it to remind you that we have something unique in this country that’s helped us out of every economic mess we’ve found ourselves in. In fact, nearly every time our economy has looked down… Read More

As a business strategy, selling to your softball teammates really isn’t the best way to optimize profits.  But that’s exactly how things got done in the prairie climes of Alberta, Canada, where I grew up.  #-ad_banner-#In fact, a lot of start-up companies get launched around my hometown. They’re mostly from the oil patch, which is a multi-billion dollar business in that part of the world.  Of course, many of these are big-scale ventures — drilling companies with large fleets of rigs or oil exploration companies that control thousands of acres. Then there’s the law firms, accountancies and human resources conglomerates… Read More

As a business strategy, selling to your softball teammates really isn’t the best way to optimize profits.  But that’s exactly how things got done in the prairie climes of Alberta, Canada, where I grew up.  #-ad_banner-#In fact, a lot of start-up companies get launched around my hometown. They’re mostly from the oil patch, which is a multi-billion dollar business in that part of the world.  Of course, many of these are big-scale ventures — drilling companies with large fleets of rigs or oil exploration companies that control thousands of acres. Then there’s the law firms, accountancies and human resources conglomerates that support them. But, surprisingly, there’s also room in this landscape for a totally different type of firm. Amid the giant corporations that move to town to pump every drop they can from the wells they pay dearly for, mom-and-pop businesses often begin popping up. They sell special sand to drilling companies for use in “fracking” procedures. They sell specialty chemicals to exploration firms to aid in the development of effective drilling fluids.  There’s even an entire sector of oil field services known as “hot shots” — which consists of drivers who are ready, at a moment’s notice night or… Read More

When I first heard this, I thought it sounded impossible. Many investors could be looking at 10% yields from a stock that yielded just 3% five years ago. How, you might ask? By not doing a single thing. #-ad_banner-#That’s right, by doing nothing more than buying the right stock, these investors could be collecting over $1,000 in dividends per year for just a $10,000 investment. That’s 54 times more than what a five-year bank CD pays today. And almost anyone can start collecting giant yields like this every year — all… Read More

When I first heard this, I thought it sounded impossible. Many investors could be looking at 10% yields from a stock that yielded just 3% five years ago. How, you might ask? By not doing a single thing. #-ad_banner-#That’s right, by doing nothing more than buying the right stock, these investors could be collecting over $1,000 in dividends per year for just a $10,000 investment. That’s 54 times more than what a five-year bank CD pays today. And almost anyone can start collecting giant yields like this every year — all from a single stock purchase. To be sure, there are dozens of stocks that could deliver equally high yields for investors. I’d be willing to bet that you’ve already invested in some of these companies. But before we talk about companies that can give you giant yields like these, I need to tell you one thing about this investment opportunity. And many investors won’t like it. In fact, some may hate it… As with any great goal, this one will take time to reach. Try… Read More

It’s already been a remarkable year so far in 2016 — especially in the rapidly fluxing oil sector.  Recently, crude set yet another historical benchmark, slipping below $30 per barrel for the first time since 2003.  #-ad_banner-#That caps a 70% slide in oil since the most recent peak in mid-2014.  And the fall has caused havoc in the sector. The most direct effect of lower crude is falling activity in the exploration and production (E&P) sector. Industry analysts at Baker Hughes reported that the U.S. drilling rig count has now fallen to 664 from 1,750 a year ago.  Simply put,… Read More

It’s already been a remarkable year so far in 2016 — especially in the rapidly fluxing oil sector.  Recently, crude set yet another historical benchmark, slipping below $30 per barrel for the first time since 2003.  #-ad_banner-#That caps a 70% slide in oil since the most recent peak in mid-2014.  And the fall has caused havoc in the sector. The most direct effect of lower crude is falling activity in the exploration and production (E&P) sector. Industry analysts at Baker Hughes reported that the U.S. drilling rig count has now fallen to 664 from 1,750 a year ago.  Simply put, many of the shale plays that became sweethearts for E&Ps and investors over the past five years are no longer viable. Cash flows are shrinking to the point where many drillers aren’t making money pumping crude here anymore.  Add that to high levels of debt that many E&Ps took on during the good times, and the industry has been hit with a sandbag.  These days, news of bankruptcies in the sector is coming almost daily. A recent analysis from experts at industry watchdog RBN Energy flagged a slate of 12 companies that are set to become “zombie” firms due to… Read More

Talk about an inauspicious start to 2016. On the first trading day of the year, the Dow Jones Industrial Average closed 276 points lower after dropping by as much as 467 points. As I write this, the Dow has continued its slide. And it’s anybody’s guess how bad things might get. #-ad_banner-#The reason? Well, the initial selloff on Monday was widely attributed to the big sell-off in China overnight. But there are plenty of other causes for concern: low oil prices, the Fed, tensions between Saudi Arabia and Iran… I’ll continue to monitor national and international developments and their impact… Read More

Talk about an inauspicious start to 2016. On the first trading day of the year, the Dow Jones Industrial Average closed 276 points lower after dropping by as much as 467 points. As I write this, the Dow has continued its slide. And it’s anybody’s guess how bad things might get. #-ad_banner-#The reason? Well, the initial selloff on Monday was widely attributed to the big sell-off in China overnight. But there are plenty of other causes for concern: low oil prices, the Fed, tensions between Saudi Arabia and Iran… I’ll continue to monitor national and international developments and their impact on the markets, but bottom line, I don’t see any immediate causes for major concern here. Why? I’ve said it before, and I’ll say it again: It’s times like these when it’s great to own a “Forever” stock. The idea of Forever stocks is simple: as an investor, you want to buy great businesses that can be held for months, years, even decades, without worry. Stocks like these are the foundation of my premium newsletter, Top 10 Stocks. This idea may sound simple, but few investors actually follow it during good times, let alone periods of market volatility. Take a… Read More

He’s the richest person in history. I’m not talking about Warren Buffett. At his peak, Buffett’s wealth is less than one-fifth this man’s fortune. #-ad_banner-#Bill Gates doesn’t even come close. Neither does Wal-Mart founder Sam Walton, telecom magnate Carlos Slim or Mark Zuckerberg, the founder of Facebook. None of these men can hold a candle to the $336 billion fortune (adjusted for inflation) amassed by a name synonymous with wealth… John D. Rockefeller. But when I tell you I’ve found what I call a “Rockefeller” investment, I’m not… Read More

He’s the richest person in history. I’m not talking about Warren Buffett. At his peak, Buffett’s wealth is less than one-fifth this man’s fortune. #-ad_banner-#Bill Gates doesn’t even come close. Neither does Wal-Mart founder Sam Walton, telecom magnate Carlos Slim or Mark Zuckerberg, the founder of Facebook. None of these men can hold a candle to the $336 billion fortune (adjusted for inflation) amassed by a name synonymous with wealth… John D. Rockefeller. But when I tell you I’ve found what I call a “Rockefeller” investment, I’m not saying it because I think it will make us billionaires — even though I’d love to be able to say that. No, I call it a “Rockefeller” investment because of what this company invests in. This stock owns a rare breed of assets that are nearly impossible for small investors like you and me to purchase directly. Typically, only major companies or industrial titans like Rockefeller can buy them. Most people know Rockefeller got rich through his company, Standard Oil. And while I want to invest in the same… Read More

On December 20, 1922, a surveyor — J.G. Tierney — made his way along the Colorado River by barge. Tierney, who worked for the U.S. government, was surveying a remote spot in the Mojave Desert called Boulder Canyon. Boulder Canyon sits in the middle of some of the most unforgiving land in America. During the summer, temperatures frequently top out near 120 degrees. Fewer than five inches of rain fall each year. Rattlesnakes and scorpions hide under rocks. And the sharp cliffs are near-impossible to scale. And yet, this canyon in the heart of the desert holds one of the… Read More

On December 20, 1922, a surveyor — J.G. Tierney — made his way along the Colorado River by barge. Tierney, who worked for the U.S. government, was surveying a remote spot in the Mojave Desert called Boulder Canyon. Boulder Canyon sits in the middle of some of the most unforgiving land in America. During the summer, temperatures frequently top out near 120 degrees. Fewer than five inches of rain fall each year. Rattlesnakes and scorpions hide under rocks. And the sharp cliffs are near-impossible to scale. And yet, this canyon in the heart of the desert holds one of the greatest investments in U.S. history… one that has generated billions of dollars in wealth and is practically guaranteed to keep doing so for decades. But it wasn’t without its costs. In total, 112 men — beginning with J.G. Tierney, who on that December day drowned after falling off the barge that carried him and his equipment — died to create this investment. I’m talking about the Hoover Dam. Before I get too far… no, I am not recommending that you invest in the Hoover Dam. Even if you wanted to, it’s fully owned by the U.S. government. There’s not a… Read More

When he buys a stock, Warren Buffett places more emphasis on one factor above almost any other. Since 1986 he has mentioned this single trait more than 20 times in his annual shareholder letters. He calls it “essential for sustained success.” However, you won’t find it listed on a company’s balance sheet. Its value doesn’t rise and fall with the market. And even if a company reports great earnings, the worth of this one advantage still can’t be calculated. But that doesn’t keep it from being a company’s most valuable possession. Take the nasty bear market of 2008 and 2009. Read More

When he buys a stock, Warren Buffett places more emphasis on one factor above almost any other. Since 1986 he has mentioned this single trait more than 20 times in his annual shareholder letters. He calls it “essential for sustained success.” However, you won’t find it listed on a company’s balance sheet. Its value doesn’t rise and fall with the market. And even if a company reports great earnings, the worth of this one advantage still can’t be calculated. But that doesn’t keep it from being a company’s most valuable possession. Take the nasty bear market of 2008 and 2009. From its peak to trough, the S&P lost more than 55%. No investment completely avoided the downfall. Well, almost no investment. Of the 500 stocks in the S&P, only nine made money during that period. Of those nine stocks, six of them (two-thirds) had this advantage. But this advantage also helps these stocks beat the market in uptrends, too. After all, Buffett has made billions thanks to companies with this trait. So what single advantage can capture the attention of Warren Buffett… help a stock beat the market in an uptrend… and help it fall less in a downtrend? That… Read More