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Good answer, Larry. I like that. The fact of the matter is it is really irrelevant what you buy. Could be diamonds, could be financial assets, could be gold, could be donkey shit. The point is, everything has a value associated with it. What it is is just a vehicle for making money(or losing money). I buy MPV not because it is diamonds, but rather because it is a very cheap pile of diamonds which will, in the future be much more valuable. End of story. I dont buy MPV because I like diamonds. It is irrelevant. I buy MPV because the value of the diamonds in that kimberlite is way underpriced for a variety of reasons. If you walk into Tiffany's on Madison Avenue in New York and they were willing to sell you a very high quality stone of 5 carats for 5% of what you knew it was worth in a few years , would you buy it. It would be stupid not to buy it , unless you did not have the available funds or unless you had the funds but knew that you would be needing them soon. MPV, at these levels, is like buying diamonds at asteep discount to their true value. That is why I like it. It could be muleshit for all I care. If muleshit can be bought cheap for eventual resale at a higher price , then its a good deal. However, muleshit has problems. It decomposes, for one. It smells, for two. And aslo, it has no value because nobody else will buy it, at any price. You may not buy diamonds, and that is fine with me(but you better go explain that to your wife or lover). However, many other people buy them, and that is the key, whether you agree with them or not. There is an established market, which is humongous, far bigger than you or me. If the rough stone market is 4-5 billion dollars per year large, multiply that by 5 or 10 to arrive at the size of the retail market for diamonds. Nonetheless, it matters not that we have diamonds, per se. What matters is that we are buying a tangible very, very, very cheap and we can sell it at a later date at a much dearer price. That is all that matters. And the reason why it is cheap is that not many people are able to see an investment here in this stock as the equivalent of walking into Tiffany's and being able to purchase their diamond inventory at pennies on the dollar. But, that is what it is. It just takes a little creativity to see it that way, something which many people lack. And thats fine with me, because it creates a wonderful opportunity to make money at their expense. There is always opportunity in adversity-it just depends on how you approach it. |
