Mark Twain Rick Rule and Metalminder ( I keep good company)The following is from Doug French, Contributing Editor, in today's July 9th Casey Daily Dispatch. Since I've described Nelson and AJ as "miners and explorers [that] are best at finding money in investors’ pockets and mining it to pay salaries," I thought you'd enjoy what Mark Twain and Rick Rule have to say about the subject. I offer this "hoping" "praying" "cajoling" "wishing" "wanting" (you get the point) that Avanti will be one of those 10 baggers. (I'll settle for 2 or 3).
Here is Doug French from Casey Daily Dispatch:
"Investing in the junior resource sector is not for the faint of heart or thin of wallet. Great thinkers have pointed out the risks for years. Mark Twain, once a miner himself, wrote “A gold mine is a hole in the ground with a liar on top.”
Investing legend Rick Rule, as clever a wordsmith as Twain, often points out that if you pooled all of the juniors together into one giant “Jr. Explorer Co., Inc.”, the company would lose $2-8 billion a year.
As an investor in this sector for years, I’ve come to the conclusion that miners and explorers are best at finding money in investors’ pockets and mining it to pay salaries.
“Most of the walking dead juniors, the zombies, are a bunch of liabilities disguised as public companies,” Rule told an audience of investors recently. “Their assets are liabilities; their financials are liabilities; mostly their managements are liabilities.”
Investing in the sector without knowledge or a guide is riskier than betting on the spin of a Las Vegas roulette wheel. Rule learned the math at university. “About 1 in 3,000 mineralized anomalies became a mine. So the typical Howe Street or Bay Street investment proposition is that you take a 1 in 3,000 chance for a 10 to 1 return.” Ouch.
Those are daunting odds, but the rewards can be spectacular when shares are purchased in a sour market. Shares of selective juniors have jumped in price this spring, but investor sentiment is far from bullish................................."