RE:RE:RE:RE:RE:May 9 Deerfoot SH MeetingBarstoolSage wrote: Actually Malx1 taught me about the importance of oil and gas...so with my last payouts one of the things I bought was a pure O&G royalty stock Source Rock...bought in and it went up...pays me monthly...8%
Puts almost 7k to work at that return...
OT but relates to GH:
Have found that those who are consistently achieving long-term investment returns above the Broad Market returns have a few things in common:
- Build their investment thesis and set time horizon, then sit patiently to see plan through
- Ability to adjust to new information as it's received
- Ability to think and act independently of the herd
- Unafraid of making some mistakes
We don't need to be perfect, we just need to seek opportunities where risk is limited to one's own financial pain tolerance and that the potential Reward properly reflects the risk accepted by the investor.
For example:
GH risk is medium-low. Fair-value upside is 50% while collecting a growing dividend and there's high probability of positive outcome over ten year period. Downside risk from here maybe 20% with low probability of negative outcome over ten year period.
It can be quite difficult investing in companies and sectors the herd perceives as "out of favour" but that's where money is made long-term. The shifting of capital from Overvalued equities into Undervalued equities is a form of Re-balance, forcing us to be disciplined with our holdings.
Re-balancing from Overvalued to Undervalued is the Fundamental Investor's mantra of Sell High, Buy Low. Painful in the moment but will look like artwork when reviewed in hindsight. Most of our capital allocation decisions start to make sense when we look back on them a year or two later.
No need to pick the exact bottom, exact day, exact hour. Just participate with the timing skills of a generalist and the stock selection skills of a sculptor.
Sage, if you bought some Freehold Royalties, good for you. That's one for people to tuck away for a decade, same with GH shares. Some of these stocks are worth the wait.
Our mistakes are what make us better investors moving forward. Like gold panning, we awash away the sand in hopes the heavy yellow stuff settles at the bottom. The stock market is your placer deposit, and stocks like GH and FRU are rare prizes contained within. Act accordingly.
Here's one of very few energy investment experts left in Canada: Nuttall
He's either a Broken Clock or an Energy Expert.
The price of Oil will decide which.
https://www.bnnbloomberg.ca/video/massive-weekly-oil-draws-could-start-in-may-prospects-of-us-100-oil-or-higher-likely-nuttall~2669849 Don't go betting the farm on Oil & Gas. Just make sure you have exposure to the sector within your Equity Book. For some that means 5%, others 10-30%, others maybe higher. Depends on one's risk tolerance and objectives. I'd say retirees should have 5-10% exposure to the energy sector. Even if they detest the sector, as many say they do. It's an interesting topic because the majority of us are addicted to fossil fuels, we just won't admit that in public.
And then there's the whole "Gambling" is a sin debate. Have disagreed with that statement for much of my adult life. Gambling takes place without us knowing it. Driving above the speed limit on shared roads, walking outside during winter conditions, eating $1k steak Tartare with Trudeau in France hoping he offers to pay with the Federal Credit Card. The list goes on. What I find fascinating about admitted casino patrons is their honesty; they accept that participating in games of chance, and games of skill, is enjoyable when conducted in moderation. The tea-totalers and holy rollers who condemn the entertainment sector are often the ones who religiously purchase scratch tickets, lotto tickets, hi-risk penny stocks and even packages of vintage hockey cards in hopes of landing "The Big One". They are gamblers, they just don't see it and dare not admit it. Yes, if you have bald tires on your truck in November, less than a quarter tank of fuel and haven't been to the Dentist in 3 years, you certainly are one of us. The risk takers. We all are. GH just allows us to participate as an entertainment seeker in a friendly, safe, regulated,environment.
Humans have been gambling for Five-Thousand years; not gonna change.
Today wagering has been modernized.
There was an entire Generation of gamblers born during the Pandemic. You'll recognize them as the one's on their cell phone while driving, feverishly "Trading" their digital coins to financial prosperity.
Not much different than playing a modern slot machine or digital roulette.
What's more fun: Wagering $100 during a few rounds of poker or wagering $100 into Bitcoin on your iPhone?
From what I've been told, only Kasking knows the answer!
Stepping down from the soap box.
Scared of heights and $150 oil.