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Brian Leni – Properly Valuing Resource Stocks In Relation To Price Trends, And Consideration Of The Three Investor Biases

Brian Leni, Founder and Editor of The Junior Stock Review, joins us to reflect on how macroeconomic factors have driven the prices of the precious metals and base metals higher, but that many of junior explorers and developers resource stocks are not keeping up with these gains in the underlying metals. We review how he looks at metals price assumptions in relation to valuations of companies with or without defined ounces or pounds in the ground, and whether he prefers more defensive companies insulated against lower prices, or optionality stocks that will outperform in a rising price environment.

 

We wrap up by having Brian outline the “3 Biases” he feels are hurting investor’s performance, and that he has talked about recently at mining conferences and sector interviews.  It is well worth investors time to listen to  how he breaks down 1) confirmation bias  2) the bias of over-influence from social proof and 3) the misweighing bias of not doing the most important things first before investing.

 

 

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Click here to visit Brian’s website – The Junior Stock Review.

Discussion
12 Comments
    Mar 24, 2023 24:53 PM

    Robert Friedland @robert_ivanhoe 7:07 AM · Mar 24, 2023 – Twitter:

    “We are heading towards a train wreck.”

    “Global copper stockpiles will deplete by August if the present trend continues.”

    https://twitter.com/robert_ivanhoe/status/1639267772130623492

    Mar 24, 2023 24:58 PM

    CEO Technician @CEOTechnician (aka Goldfinger…. aka Robert Sinn) 10:15 AM · Mar 24, 2023 – Twitter:

    “Recording of an incredible Friday conversation with Eric Coffic @ericcoffin_HRA”

    “I think we pretty much covered it all. From #Fed macro to precious metals, junior #mining, and Eric’s origin story. #copper #gold #silver #Yukon $AU.V $BTT.V $HIGH.V $VZLA $WRN.TO”

    https://twitter.com/ceotechnician/status/1639315023095898112

      Mar 24, 2023 24:00 PM

      comment from the article……………..thanks……..

      From my perch, the financial charts are sounding a blaring red light warning sign.

      Meanwhile, gold has had a powerful rally in recent weeks (from $1810 to $2014). This morning, gold finds itself flirting with the $2,000 psychological level yet again, its 3rd test of this level in the last 100 hours. With the Daily Sentiment Index for gold up to 85 as of yesterday’s close, the standard expectation would be for a gold futures smackdown during Friday’s US trading session.

      If such a smackdown does not materialize, it will be confirmation that a major sea change is upon us.

        Mar 24, 2023 24:01 PM

        oops……… should be posted under the NEXT ARTICLE………..sorry………….

          Mar 24, 2023 24:04 PM

          Thanks OOTB. I gotcha… in reference to the Goldfinger article right below.

          Yes, good additional points to highlight amigo, and much appreciated.

            Mar 25, 2023 25:37 AM

            Ex……… thanks for the followup……… have a great weekend…….

    Mar 24, 2023 24:07 PM

    Updating The Most Important Chart: Gradually, Then Suddenly

    by @Goldfinger on 24 Mar 2023

    “During last weekend’s video, I noted what I believe to be the most important long term chart that investors should be aware of:”

    Gold/XLF (Monthly – 20 Year) Chart:

    https://ceo.ca/@goldfinger/updating-the-most-important-chart-gradually-then-suddenly

    BDC
    Mar 24, 2023 24:33 PM

    Exercize
    Eat Good
    Sleep Good
    Buy Gold
    Burma
    Shave

      Mar 24, 2023 24:47 PM

      +6

        Mar 24, 2023 24:57 PM

        I would disagree with this statement unless you are already in from before and have a good position. If you are to buy current position my advice would be not to buy in at this current moment and wait on the sideline of course a minority contarían view.

        For me we are taking a hit and your audience deserves to know that and buy if we go down, which would mean a better opportunity. Probabilities right now are a gamble and I like to play percentages. Even if the midterm says we are going up probabilities still see is a gamble 50-50 in my opinion.

        Being prudent and waiting or having patience to turn out to be a better thing, the equities market is about to crash. Why would you jump in right now if you’re already in a long position? Does not make sense to me.

        Glen

          Mar 24, 2023 24:01 PM

          Hi Glenfidish – I think BDC’s comments were a play on Brian Leni’s points during the interview on covering the last investor bias being the misweighing bias, and using the example and analogy about not doing some of the right things if one wanted good health, noting it was about eating/drinking better, not smoking, getting good sleep, doing some exercise etc…

          I got the impression BDC was just doing his own rendition of that , and not literally advising people to go out and buy gold right this instant. If you listen to the interview I think you’ll get the comment more… which is why I gave it a +6 (which was a play off of the normal +1 due to the 6 activities he listed)… so just a lot of playing around on a Friday afternoon. 🙂

            Mar 25, 2023 25:59 PM

            Gotcha amigo thanks for clarifying!