Rick Rule of Sprott US Holdings is a popular figure in the resource sector, and that couldn’t have been more clear at the recent International Metal Writers Conference. He gave some of the most well-attended talks at the show, covering uranium, private placements and more.
Speaking to the Investing News Network midway through the event, he expressed positivity about commodities overall, commenting, “I like the whole space.” In the near term, however, he’s most interested in precious metals. “The precious metals stocks I think are reasonably priced,” he said, adding, “I don’t think they’re cheap, but they almost never become cheap.”
That said, Rule cautioned investors not to bite off more than they can chew. “[Investors should] own the number of stocks that corresponds with the number of hours per month that they’re willing to spend on research,” he said. In other words, if you’re willing to spend 10 hours a month on research, you can own 10 stocks — it’s up to each individual to decide their limit.
In terms of which stocks are the best, Rule gave a few tips on how to identify good ones. He said he looks for companies with management teams that have been serially successful (read more on that here) and projects that could become large — perhaps most importantly, however, he focuses on understanding what a company’s value proposition is.
Watch the whole interview above, or click the links below to skip to different parts:
- 0:21 (gold and the US dollar) — “gold has done very, very well in non-US dollar terms.”
- 2:14 (advice on choosing stocks) — Rule explains his “holy grail” for picking good companies.
- 4:25 (why to own physical precious metals) — “I sleep better at night owning physical precious metals.”
- 5:07 (bitcoin and distributed ledger technology) — “I was until very recently a small bitcoin owner.”
The transcript for this interview will be added shortly.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.