BBOB,
I've already violated the heck out of that stricture with FN/EN.There are different philosophies. Peter Lynch says if you have identified a great outfit, violate this standard and don't worry about it. I just don't know of a better company,other than maybe Coke.The rule is based on a company getting into trouble,not what the market may or may not do. The way I see it,with their performance over the last decade,and their balance sheet and management, it's truly a great company. They wouldn't lose money if gold went to $0. They would still eke out a small profit on their cash holdings(I think), since they have 0 debt.Lynch always focused on the fundamentals of a company,not what he thought the market might do or how it would treat that investment over the short haul. I have no idea where this thing will be in the next couple of years, but I think they can survive anything thrown at them and may prosper due to this commodity deflation by picking up royalties like a shark with blood in the water.Besides, even though they are a commodity play, the performance over the last decade has been in a poor commodity market. I think their royalty niche is the safest,yet potentially most profitable thing going. I'm surprised more haven't gone this route. Only the loss of Schurlich or Lassonde would make me reconsider. If you disagree or have warnings for me,please let me know. I always want to know others thoughts on the "prudence" side as I think I have too much gambling blood in me for my own good. Also,
did you ever pick up any jr. uranium deals?
TM |
