Mining Stocks – $1 Million Portfolio (August 20, 2017)

by FI Fighter on August 20, 2017

in Cobalt, Cobalt Updates, Copper, Copper Update, Lithium, Lithium Updates, Precious Metals, Precious Metals Updates, Progress, Uranium, Uranium Updates

When I first got into precious metals in the summer of 2015, I took a lot of flak from a lot of people. For the longest time, I was this person who was pounding the table, spewing the virtues of investing for cash flow/passive income, and then all of a sudden, I took this massive detour and decided to do something altogether unrelated…

After locking down my last rental property in early 2015, soon after, I decided enough was enough…

Real estate, stocks, bonds, all that good stuff was no longer cheap, but in my eyes encroaching on and selling at nosebleed territories.

So, even though I had completed two separate cash out refis to pull out ~$200,000 in fresh funds, I was perplexed as to what to do with all that capital.

Nothing looked cheap…

I guess I’ll just hold cash?

Yeah, that thought lasted for a few good seconds before I stumbled upon the world of mining stocks…

You know, in 2015, the absolutely most hated sector in the world…

Deep Value Investing, I liked to call it.

Anyway, fast forward things to early 2016, and yeah, I felt like a total dumbass…

From January 19, 2016.

Depths of Despair 1_19_16

So much for deep value…

More like a beaten down, battered, and bludgeoned portfolio…

You’re -$60,000 in the hole, FI Fighter, when are you gonna tap out and admit defeat?

The haters all pondered…

But you know what, despite the short-term set back, I had learned from investors far more successful than me to focus on the BIG PICTURE, and not worry so much with the day-to-day fluctuations in share prices…

Don’t confuse volatility with risk. They aren’t the same thing.

If anything, I felt like a kid in the candy store

Buy low and sell high.

I kept repeating that message to myself…

Over and over, again and again…

Luckily, there were other investors who felt the exact same way that I did, and were just as giddy, if not more so than even myself in being afforded the “opportunity of a lifetime” to load up big on dirt cheap merchandise that was selling off for pennies on the dollar…

Misery loves company?

Maybe…

But I certainty appreciated the support and not having to go at this task alone…

Well, fast forward to the here and now and something pretty incredible just happened. Tonight, on August 20, 2017, my mining stocks portfolio eclipsed $1 million (due to price action on the ASX).

Mostly because of a dinky junior “micro-cap” mining stock called AVZ Minerals (AVZ.AX).

AVZ Minerals is up over 1,000% year-to-date.

Pretty crazy indeed…

Look, I realize that $1 million is chump change for a lot of Big Baller Brand type of investors out there, but for a scrub like me who was never supposed to amount to anything in life, it is a really big deal…

Surreal, if you will… I’m in total shock right now.

And although nothing is permanent until you sell everything and book realized gains, this is still something that has surpassed even my wildest dreams when I first started the journey back in 2015…

So, it just makes me sit back and reflect a little…

 

First off, I owe credit where credit is due… and all of my big wins in mining stocks are attributed to me following the research of other much more savvy investors…

 

How does the saying go again?

 

Standing on the shoulders of giants.

 

And you will go far in life…

 

Because the reality is I don’t know jack shit about anything…

 

Let’s recap my biggest mining stock wins for a minute:

 

Ivanhoe Mines (IVN.TO/IVPAF) – Rick Rule gave me this idea after listening to him pound the table about this stock on YouTube.

Critical Elements (CRE.V/CRECF) – Tinker, Blaggers, Elvis, Rinny, etc. and the gang over at Stockhouse tuned me into this under the radar lithium junior.

AVZ Minerals (AVZ.AX) – Mineralised, Super Ninja, Blast Furnace, SoS, Haplo, Green Metals, etc. are the folks worth following who actually know what they are talking about when it comes to lithium and lithium investing ideas…

 

Whoever said I had an original idea about anything?

 

I stole all those stock ideas above from people a lot smarter than me.

 

So, I’m most humbled by everything…

 

I guess my main idea of emphasis is this — In this day and age, you don’t have to do anything alone anymore… Get tuned in to the right sources and follow the right people… There are a lot of amazing folks out there and many of them are more than generous with their time, ideas, hospitality… Don’t be afraid to reach out and make connections.

 

And very importantly — Be open minded. Don’t make sweeping generalizations and blanket statements about things you don’t really understand… If you want to learn about real estate, go to real estate meet ups… Join Bigger Pockets. If you want to learn about mining stocks, sign up, register, and participate in the discussions over at CEO.CA and HotCopper. Learn the Rules of the Game.

Etc.

Etc.

 

It’s so funny, to this day I get lectured from people trying to teach me the “ins and outs” of mining stocks, and these are people who have never even invested in the natural resources space before… Same shit happened to me with real estate when former co-workers used to try and talk me out of buying Bay Area rental property in 2012…

 

WTF?

 

There are so many ways to make money out there!

 

Stop all the hatin’…

 

Get educated.

 

Anyway, this evening was pretty crazy, so I’m just rambling now…

 

Two years ago, I never would have thought any of this was possible.

 

Having full conviction to go against the grain (real estate, index funds, dividend growth investing) and pretty much everyone else in the early FI community was not an easy thing to do… It takes hundreds if not thousands of hours of research to ever bet big with anything…

 

In hindsight, it was all totally worth it.

 

Fight On!

{ 29 comments… read them below or add one }

1 GyokuroNo Gravatar August 21, 2017 at 6:51 am

Congrats on your success! Hope I can follow you all the way to the second million invested in the markets next year!

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2 FI FighterNo Gravatar August 23, 2017 at 9:39 pm

Gyokuro,

Thanks! Hopefully the party is just getting started. 🙂

Cheers!

Reply

3 Midwestern LandlordNo Gravatar August 21, 2017 at 7:39 am

Congratulations on the milestone Jay. Do you still have $1.2M as your end game or have you changed strategy? I agree, being open minded is important in investing. Typically everyone in life gets an idea from someone else. I am sure a lot of people got into the precious metal sector, et al because of you. Ray Kroc got the idea for McDonald’s from someone else who had started the concept.

You are right, there are a ton of ways to make money in this world. Also a ton of ways to lose money. You seem to have an ability to be on the winning side which starts with the concept of buying undervalued assets. On the other side, people lose fortunes by buying (or holding for too long) overvalued assets. It is a big casino albeit investing skill and timing plays a large role in success. Anyone who thinks the markets are truly efficient are kidding themselves. There are bubbles all over the place. And opportunity in other areas like precious metals. Am I the only one that thinks that the general stock market is overvalued and this is not going to end well? Some cycles are destined to repeat themselves. Which is why I like bread and butter real estate investing.

I do hope some day you will get interested in the real estate sector again. Although it will probably take a large crash for that to happen.

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4 FI FighterNo Gravatar August 23, 2017 at 9:41 pm

Midwestern Landlord,

Thanks! In regards to the goal of $1.2 million, that’s still the focus for the short-term. If I can clear that hurdle, I’ll have to really reassess where things are at, and I really might just cash out and call it a day…

Long-term, absolutely, I would love to get back into real estate and/or dividend stocks… Those instruments are ideal for Buy and Hold Forever which is of course my preferred strategy…

Right now, I’m just having a lot of difficulty finding value anywhere else pretty much outside of mining.

So for now, I’m sticking to the pet rocks.

All the best!

Reply

5 TawcanNo Gravatar August 21, 2017 at 10:38 am

Does this mean that next time we meet up in person you’ll buy me food (again? :p).

Congrats man, that’s impressive.

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6 FI FighterNo Gravatar August 23, 2017 at 9:42 pm

Bob,

Thanks for stopping by! Haha, definitely lunch on me but you’re treating us to some coffee again. 🙂

Looking forward to meeting up again soon.

Take care!

Reply

7 JohnNo Gravatar August 21, 2017 at 11:08 am

$2 party time lol

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8 FI FighterNo Gravatar August 23, 2017 at 9:42 pm

John,

Oh yeeeeaaahhhh let’s do this!

Cheers!

Reply

9 alNo Gravatar August 21, 2017 at 11:50 am

” There are so many ways to make money out there! Stop all the hatin’… Get educated. ”

Congrats, jay. Here’s a nice interview article with a MIT car and truck drive train specialist, covering all bases. You need to read till the end to have the whole picture plate presented to you, and eventually find new investment ideas, if you decide to branch out.

https://www.nytimes.com/2017/08/17/automobiles/wheels/internal-combustion-engine.html?rref=collection%2Fsectioncollection%2Fbusiness&action=click&contentCollection=business&region=stream&module=stream_unit&version=latest&contentPlacement=7&pgtype=sectionfront

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10 FI FighterNo Gravatar August 23, 2017 at 9:43 pm

Al,

Thanks. I know you’re a believer in ICE but I gotta say I’m pretty much all in on clean energy/EVs.

So far, that trade has been highly lucrative and I think the best is still to come.

All the best!

Reply

11 BowmanNo Gravatar August 21, 2017 at 1:52 pm

Wow, congrats, a very nice milestone! Keep up the good work and inspire us readers also in the future! 🙂

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12 FI FighterNo Gravatar August 23, 2017 at 9:44 pm

Bowman,

Thanks! I’ll do my best to keep at it.

Take care!

Reply

13 kp138No Gravatar August 21, 2017 at 2:35 pm

Hey Jay, it’s Kevin. Congrats and I’m very happy for you!

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14 FI FighterNo Gravatar August 23, 2017 at 9:44 pm

Kevin,

Thanks for stopping by and for all the support!

All the best!

Reply

15 VinNo Gravatar August 21, 2017 at 10:32 pm

Well done mate! The party hasn’t even started yet, and you’re already over 1 million $!! Let’s aim for that 10 million $ mark in 2019/2020! It’s a great thing what you’re doing.. It’s all about learning from each other, and ‘stealing’ great ideas. Speaking of which: have you read Jim Rickards’ ‘Road to Ruin’? An absolute must read! This will make you twice about converting some of that digital wealth (ie. stocks) into physical (ie. coins) for when the ‘Ice 9’ event occurs.

More info on Ice 9: https://dailyreckoning.com/ice-nine-plan/

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16 FI FighterNo Gravatar August 23, 2017 at 9:46 pm

Vin,

Thanks! Wow, $10 million that’s really really aiming for the stars, but sure why not?

Honestly, $1 million in mining stocks has already exceeded any expectations I ever had going in… I still remember when I first cleared $1 million with real estate and that now feels like an eternity ago…

When markets move in your favor, a lot of progress can be made in a short period of time.

Thanks for the link, I have read a lot of Jim Rickards work and always learn a lot from him. Haven’t read Road to Ruin yet but I’m sure I’ll get to it in the near future. I have a copy of all his other books.

Take care!

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17 SriniNo Gravatar August 22, 2017 at 2:33 am

Congrats Jay. Many more millions to come your way. sight tight.

cheers
Srini

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18 FI FighterNo Gravatar August 23, 2017 at 9:47 pm

Srini,

Thanks! We’ve both come a long long ways since January 19, 2016. 🙂

Cheers!

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19 Investment HuntingNo Gravatar August 22, 2017 at 7:13 pm

Nice work buddy. Thanks for sharing.

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20 FI FighterNo Gravatar August 23, 2017 at 9:47 pm

Nathan,

Thanks bud! Appreciate all the support through the years.

Take care!

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21 ChenNo Gravatar August 23, 2017 at 7:16 am

I never got into mining stocks…..looks like I should have! That’s an incredible win, congrats Jay (drinks are on you next time)

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22 FI FighterNo Gravatar August 23, 2017 at 9:48 pm

Chen,

Thanks man! Haha, not quite as lucrative as your businesses and side hustles, but it’s not too bad!

Sure, drinks on me! Taiwan or HK, I’m down. Hopefully I’ll get back to Asia before the end of this year.

All the best!

Reply

23 JCNo Gravatar August 23, 2017 at 8:55 am

Hey Jay,

What do you think of First Cobalt?

Seeking Alpha just released this article stating they would be acquiring CobalTech: https://seekingalpha.com/news/3291292-first-cobalt-cobaltech-merge-create-world-s-largest-cobalt-focused-explorer

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24 FI FighterNo Gravatar August 23, 2017 at 9:50 pm

JC,

I can’t say I’ve done much research into that company, but for the most part I’m taking a wait and see approach. I really don’t know how prospective Canada is for cobalt, and so far my research has shown that the massive deposits are all based in Congo or Russia, not the best places in the world to invest in. That, or nickel laterite projects such as Clean TeQ and Ardea in Australia.

First Cobalt is on my watchlist for sure.

Cheers!

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25 JNo Gravatar August 24, 2017 at 1:53 am

Gratz! I like the way you think, write and invest 😛

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26 SlayNo Gravatar August 24, 2017 at 7:54 am

congrats!

fantastic plays. any thoughts on turning attention to oil/energy sector? the multi year crude chart is getting ugly.

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27 ReepekgNo Gravatar August 29, 2017 at 1:10 pm

What is really impressive about this is that I’m up 34% on GDX over approximately the same time period. You are really outperforming here, congratulations!

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28 Joshua DorkinNo Gravatar September 2, 2017 at 8:00 am

Congrats Jay. I’m just catching up on your site and I appreciate your mindset and insight. Also, thanks for the plug for BiggerPockets – I didn’t expect to come across us while reading about your mining plays. Very cool.

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29 MikeNo Gravatar September 13, 2017 at 7:19 am

Did you really quintuple your portfolio or is there additional cash infusion?

Reply

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