Erik Wetterling – Waiting To Pull Profits On Recent Winners If The Journey Is Just Getting Started
Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins us to outline why it is best to be patient with companies that have demonstrated something special, because they may still have much further to grow if they have unrealized and growing value, before one would want to harvest gains. We’ve discussed in the past that often the discovery hole, or key company milestone is just the beginning of the journey, even if the share price has put in a nice pop higher.
In this interview we discuss Magna Mining (TSX.V: NICU), as an example of nickel and base metals company that Erik feels is just getting started in relation to the market recognition of the value they already have put in place. Erik makes the point when one gets positioned early into an unfolding value creation story, that one can even press their bets by averaging up in a story that continues to grow in share-price and market cap; so this is the approach he has decided to take personally in Magna Mining up until present. *
We point out that investors should really do their due diligence on the front-end as to where they believe the value in any company they invest in can realistically grow over a certain period of time. Then once an investors has a thesis for the potential value of the company over a specific time horizon for the investment, then they can ask themselves if their actions are in alignment with that thesis when deciding when to exit the stock. Most big wins in the sector take years for the stories to unfold, which can be a challenge for investors that only want to hold for weeks or months before assessing if it was the right investment.
*In full disclosure, Magna Mining, mentioned by Erik in this interview, is a personal position he holds in his portfolio, and is also a site sponsor of The Hedgeless Horseman website.