So then we should see funds with spectacular outperformance records headed by geologists and mine processing experts.
These funds could stay small and easily destroy the market.
Can you name the top five that run on this model.
Thanks.
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Some commodity stocks sky rocketed as a result of rising commodity prices.When there is a demand for medical gloves there were demand for rubber. When all vegetable prices rocketed palm oil prices also rocketed. When gold prices went up gold shares also went up. Now they are falling rapidly along with commodity prices.
"Daytr;Mining companies is where multi baggers is quite a regular event. If you know a bit about geology & mine processing then they can be a fairly reliable punt. Tech is quite similar in a way, however tech is continually changing if the company doesnkeep up then its like a mine that runs out of resources."
What about starbucks?
What about home depot? Started as a single store
What about Microsoft?
Those 100- baggers had strong competitive advantage, generated high return on capital over a long period time. I found food stocks also have become 100-baggers after 30 years.
https://finance.yahoo.com/news/7-sup...182202169.html
Not just from the rise in commodity prices although that is obviously a factor. I am talking about junior mining companies that convert an exploration program into production. There are countless examples but to name a few. Northern Star Resources, Sandfire, Evolution Mining were all my customers.I remember when Fortescue was a 20c stock, Paladin went from 1c to $10. Hill 50 gold back in the day, Alkane Resources is another that's done well. I have others I am watching now that seem like candidates to replicate those sort of performances. It is high risk, high reward but if you have a background in commodities or Mining you can narrow that risk.
positive market action on potential breakout today . should get if not already started a big short stop run esp if goes thru 4300
economic news helping too
Payrolls rose 339,000 in May, much better than expected in resilient labor market
https://www.cnbc.com/2023/06/02/jobs...may-2023-.html
powering the dow
China Mulls New Property Support Package to Boost Economy
https://www.bloomberg.com/news/articles/2023-06-02/china-mulls-new-property-market-support-package-to-boost-economy?srnd=premium-asia#xj4y7vzk
The current ftse100 dividend yield is 3.78% and has varied between 2.4%-4.5% over this century. So in local £GBP terms - after tax returns may probably be in excess of inflation or a bank deposit.
In NZD terms the compound after tax dividend yield may have beaten NZD inflation (78%) this century*. When you factor in the NZD decline of the Ftse100 capital index, you would probably at best have broken even with inflation or gave gone backwards.
This does not take into account if you can successfully beat the index with stock and sector selection.
* I have not calculated this as tax regime/FIF complicate that.