What most investors get wrong about gold stocks + new research report

There are three things the majority of investors fail to understand with regards to gold stocks. The first is gold is NOT THE hedge against inflation and thus gold stocks not even better hedges. The second is with higher gold prices, NOT ALL gold stocks go up exponentially. The third is the evergreen that all gold stocks are heavily undervalued by the stupid market and great buying opportunities. I am going to take these beliefs apart. My Premium PLUS members receive on top my best gold stock idea after I have already had a golden hand with my silver pick (for all my members). If you read until the end, I have a small gift for you.

Continue reading

Namibia – the new and better Guyana? + new research report

Although ever since the predictions and paroles have been that the world is running out of oil soon, from time to time big new discoveries have been made. Brazil has vast known reserves that could last for 50 years. Offshore the coast of neighboring Guyana, a reservoir of an estimated double digit billion barrels of oil equivalent is being already extracted. There’s a good chance, Namibia, a country in Southwest-Africa, could become the “next Guyana” – maybe even a better one!

Continue reading

Is the world’s largest publicly traded hedge fund worth a look?

Indeed, there is a publicly traded hedge fund. It is not just a small shack, but it currently even has more assets under management (AuM) than Ray Dalio’s Bridgewater and several times more (!) than other famous names like Citadel or Tiger Asset Management. Is a PE of 10x and a dividend yield of 5% with opportunistic buybacks convincing enough to consider this stock?

Continue reading

Why you should look out for Cannibals

My perception is the majority of stock investors do either prefer dividend stocks or something with a high growth component like first and foremost technology. The third group would be turnarounds (which I am also not opposed to). What is much under-appreciated, though, are cannibals or buyback monsters. I think this topic should earn more attention. Good for those who know about it.

Continue reading

The untold risks of average returns

This headline might sound confusing at first sight, but behind it is a topic worth thinking about. As one understands what’s behind “average returns”, a portfolio check-up could be appropriate, especially if one is overweight in stocks with past above average performances paired with high valuations. A few thoughts on risk-adjusted investing.

Continue reading

Uncle Sam as tenant? Two stocks with government exposure – Part II

While it is not directly investing in the government per se as you won’t have any direct ownership in it (luckily), I’ve found two stocks that are operating in the name of it. I am not talking about defense companies where governments are the sole customers (individuals don’t buy tanks). There are two high-yielding REITs with several government agencies as their tenants. Are they worth a look? Part two.

Continue reading

BlackRock: ESG harmful for business – hated stocks poised to come back?

One of the big investment topics of this decade could be the return of those neglected and hated sectors that did not fit into boldly advertised ESG policies. Dirty, careless, only return focussed, etc. Yet, that’s not the same as not needed or replaceable, not to mention affordability. On the other hand, you have greenwashing, higher costs of living and ousting of non-liberal, more conservative customers with silly messages and acts. BlackRock is writing it and the market is speaking. Listen.

Continue reading

Time to look at gas + new research report

Energy in general is a hotly debated and controversial topic. But when it comes to natural gas, it can become extreme, especially if you mix in liquefied natural gas – or in short: LNG. For long, I have been sitting on the sidelines regarding this market. But I feel now is the time to not only write a Weekly, but also a research report for my members about it – as a hedge from a European perspective. As a bonus, I estimate a 10% dividend yield to be announced next week from my latest pick.

Continue reading

Is this the logical pick in the weight loss mania?

Hypes and manias are part of the game of stock markets. Whenever a new trend emerges, more and more people hear of it and start to invest. Commonly, it’s first the professionals and depending on the underlying theme also ultra-contrarian investors. If a story has legs, then the retail crowd jumps in which often leads to exaggerations and bubbles. One of the current hypes is clearly weight loss drugs. But thinking around the corner, is there an overlooked, more conservatively valued stock to benefit?

Continue reading

Why I don’t care about the Lindy effect

There are many rules of thumb and well-intentioned advice for younger investors. One such “rule” says that it is better to buy stocks of older and proven companies. While I do not disagree with this on an isolated basis, I am missing the second part, namely that every business has a certain life expectancy. There comes inevitably a time for every company to either step into the background or to disappear altogether. History is full of examples.

Continue reading