| “The stock market is a device to transfer money from the impatient to the patient. Warren Buffett
Dear XXXXXXXXX Trading platforms and apps have turned investing into gambling. It is not unusual for a retail investor to buy or sell a couple of shares online at the same time that he’s buying his weekly groceries online. This is how accessible trading has become. Trading has become just another e-commerce platform for us to engage with. But notwithstanding short term gains (or losses) old rule market principles still apply over the long term- and that is that making money requires patience. In the case of junior mining, many investors make the mistake of trading out of a share at the first sign that the share price has pulled back, when in many instances this represents a BUYING OPPORTUNITY. Similarly, investors make the mistake of trading out of a stock when drill results are delayed or not forthcoming. Again this is almost always a mistake. Mining is a long term game. Many junior companies with average projects have cottoned onto this idea of appeasing the market with drill results, opting to release superfluous results- total red herrings. DON’T BUY INTO THIS RUSE. Instead, look to the smart money. Resource funds and anchor investors that choose to back a junior exploration company, don’t typically trade out of the stock on delayed results or other setbacks. Retail investors should look to these investors for guidance, while being nimble enough to get additional alpha in the market by timing their BUY or SELL positions. Winning at stock picking requires three key elements:
(1) Ensure the companies you buy have a compelling investment case,
(2) Buy in at the right price and,
(3) have patience, even when you have lost your patience - have patience.
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