Tuesday, 4 September 2012

Frank Giustra - Buying Juniors - and Farms

Interview at CEO.CA with Tommy Humphreys, links below.

Frank Giustra is a very well connected and extremely successful Canadian investor and Philanthropist.

Believes the inflationary path will be followed by governments and his investments are driven by that.

Will sell gold "when everyone wants it", much higher than now. Does not see a return to the gold standard but a change to the currency system and the US$, where gold and commodities may play a part.

Has been buying juniors over the past 18 months and has seen some fall by 50%. Thought he bought bargains a year ago. Sees assets trading for pennies on the dollar.
Sees the developers moving ahead of the explorers.
Believes "risk on" will return when markets believe there has been some fix to the European issues, probably through money printing.

Likes food and food production going forward, based on population growth, land degradation and water issues and the inflationary macro picture. Has invested a lot in farms, very long term. (Jim Rogers suggests  the same)

On Juniors

“The resource market is in the worst state I’ve ever seen it in in the 34 years that I’ve been trading stocks and I think it might stay bad for a little while longer but I think it will turn around,” 
”People usually connect irrational and stupid market behaviour with peaks of markets, but it takes place at the bottom of markets too. And it’s just as bad [at bottoms] … fear is a much stronger emotion than greed, so the sense of hopelessness some people might have about the resource sector right now is something that you know if you’re logical about it, it will change. It’s not going to stay like this forever. If you lose complete faith, you just have to give your head a shake”.
Giustra goes on to touch on junior resources plays, highlighting how some are trading at “levels I never would have imagined” but that he’s also piled a bunch of his money into the sector in anticipation of a rebound.
“These are companies with real assets. I’m not talking just about exploration stocks, I’m talking about companies with either world-class assets or developing world-class assets that are trading at pennies on the dollar in terms of valuation.
“So what I’ve done over the last 18 months is taken a very significant chunk of my wealth and chosen a whole stable of these companies that I feel meet my criteria. My criteria is great assets, great management, grossly undervalued and, most importantly, that in my view are able to weather this storm however long it might take without massive dilution – without having to go to the equity markets to raise money when their shares are trading at pennies on the dollar”.
He continues: “If I were an investor out there I would really start to think about the fact that this will change and look at value and buy it: pick right, sit tight”.

History Books, past as a guide to the future, discusses US situation compared to the Spanish conquest era.

Think and Grow Rich, Napoleon Hill. Goal, Believe, focus, will happen.
Linked Here

The four agreements, Don Miguel Ruiz
Don't take anything personally, be impeccable with your word, do your best, don't make assumptions.
Review Here

His first break from drill-holes, Breakwater Resources.

The interview at CEO.CA

Some discussion at Got Gold

Giustra's insider positions are listed on the "Good People - Good Projects" page here. However my impression from the interview is that he has been investing in larger more established juniors, but I have not found names....

1 comment:

  1. What ever happened to south africa gold mining companies they use to be a big deal not anymore.