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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (3242)	8/9/2013 7:58:25 AM
From: w0z	1 Recommendation Recommended By tsigprofit Read Replies (1) \| Respond to of 4719

I'm a newbie here (and thus will not vote) but don't you want some diversification of asset classes in your portfolio?

To: The Ox who wrote (3242)	8/9/2013 8:46:56 AM
From: Sergio H	Respond to of 4719

I have to agree with you and will reconsider my vote. We should be looking at what has changed since we added the stock to our portfolio and as you said, we knew that SLW was commodity based when we picked it. Goldman put out a list of cheapest stocks. Nick's pick, NBR is included as is QCOM which I nominated. There's a few other ideas that have been mentioned here. businessinsider.com

To: The Ox who wrote (3242)	8/10/2013 1:01:29 PM
From: bruwin	Respond to of 4719

”Why aren't we dumping APA? Who's to say that the price of oil won't fall in a similar fashion as gold and silver did over the past year?” I would say, TO, that the likes of Oil is affected by, and reacts to, different ‘stimuli’ than does the precious metals. Silver, and more especially gold, can move quite dramatically due to what’s happening in the financial and related currency markets. I believe we’ve seen a lot of evidence of that in recent times due to the “financial crises” that have plagued the USA and Europe. In the case of Oil, especially in the USA, we’ve seen some positive contributions made to the supply side as a result of the shale extraction and fracking process, making the USA less dependent on foreign Oil. There's little doubt that Oil will remain a much needed commodity for some time yet. It has a definite need and place in the industrial processes and consumer markets. I don’t think the same can be said for the precious metals, where their demand tends to be fairly largely related to confidence in the financial system and the world’s reserve currency. Speaking for myself, I stand by my contention that mineral and mining related stocks can be unpredictable due to the varying demand for their resources. And as you, yourself, said, ... “I have no insight into the pricing of silver, so I can't say where it's going. I certainly didn't expect this type of a move in silver in August of last year and I don't think too many of you out there have any idea where silver is headed over the next 12 months, .....” If, for example, one looks at Buffett’s public company holdings one sees Oil related stocks, but nothing specifically (to the best of my knowledge) with regard to mining and minerals. So if the “old master” stays away from them, maybe that’s a stock selection principle that one should take cognizance of .... especially over the longer term ?!