General Priorities
#1 Margin of Safety > #2 Probable Growth > #3 High Potential Growth
#1 – Can’t compound a loss
#2 – Half a bird in the hand is better than one in the bush
#3 – Upside surprise
Companies that fit all three are few and fare between. Novo Resources and Lion One Metals are two good examples.
Usual Market Priorities:
High Potential Growth > Probable Growth > Margin of Safety
“I want to get rich tomorrow”
Sadly, Erik is right about priorities for most of us. Time for me once again to rethink mine.
I’m just having a hard time reconciling what happened during covid sell off with where market is today. The market has been turned into a casino and my gut tells me the elite are creating huge volume and sucking in retail in order to dump all this overvalued equity crap on the them. Equity valuations are in the top decile compared to history. I don’t think miners are overvalued or gold considering how much money has been printed. With that said nothing is immune if a complete washout occurs – the chances are high and rising of a correction if not crash.