Interesting comments. I have always believed that diversification is a hedge against ignorance, a la Warren Buffet. Thus, my strategy has always been to not only overweight in my best idea, but to put everything in my best idea. And I applaud those who are eschewing conventional wisdom and overweighting uranium.
My claim to fame is putting my entire portfolio in CSCO in 1994, and leveraging the increasing equity by trading leaps and shorting puts. (retired at age 39)
Today, although I do love the uranium story, China is my best idea, and I have a very large position in China Mobile. (CHL)
CCJ has been my best idea in uranium, and I have traded it successfully since 2004. Since the Cigar Lake debacle, however, trading CCJ is clearly not the best way to leverage uranium. I don't believe I am smart enough to trade the juniors, and I don't need to take the risk anymore. (which probably explains my large position in such a conservative stock like CHL)
Short term, I just believe that u3o8 has gotten a little frothy. Longer term, I do agree that although Wall St. is aware of the Uranium story, Main St. still has not discovered it. Thus, we do have at least several more years to go, assuming Cigar Lake and other projects come online in the next few years.
JA |
