The Next Big Rush – Getting Properly Educated in Mining Stocks

by FI Fighter on September 2, 2016

in Links, Podcast, Precious Metals

Next_Big_Rush

When it comes to investing, I’ve always stressed that for whatever asset class you’re getting interested in, before you go out there and start blindly buying just about anything, the best thing that you can do for yourself is to first get properly educated.

With mining, in particular, this industry just operates in an entirely different fashion than that of Buy and Hold Forever type of investing. Whenever I see someone try and bash mining stocks because they make for “crappy long-term investments”, I know that the critic is usually someone who is uneducated in the sector, and hasn’t spent more than a few hours (if not minutes) researching the sector.

From Sprott Global.

capture_499x355

Thanks goes out to Sabeel of Roadmap2Retire for sharing that graphic with me.

Over the past 45 years there have been 7 bull cycles and 7 bear cycles with varying duration and percentage gains.

On average, from the bottom of a bear market to the top of the bull market cycle, gold equities have risen approximately 500%. Better bull cycles have yielded returns of up to 760%.

Mining stocks are ticking time bombs… You don’t want to Buy and Hold Forever these type of assets… Money is made in this space by “buying low and selling high”. You know, what every investor is taught on Day 1 of Investing 101, but something very, very, very few people ever really follow…

Just think about real estate investing (REI) for a second… Investors make millions through Buy and Hold Forever, collecting cash flow each and every month like clockwork. However, you also have those folks who invest in real estate, but are more into things like house flipping, which relies on “value add” and selling back to the market for a higher price.

Guess what?

Both methods work and you can make lots of money both ways!

The most successful real estate investors that I have met in my life are the ones who are open-minded enough to consider both lucrative avenues… There is a time and place for each… Sometimes one works better than the other, and sometimes they both work equally well.

So, when it comes to stocks, why can’t we all learn to take that same type of approach? Binary thinking is such a limiting way to go through life (and investing)… Sometimes passive income (cash flow) is the best way to go, and other times, appreciation (capital gains) takes the cake…

Since I’m an agnostic investor who is solely focused on early FI and sustaining early FI for perpetuity, I say just give me the best deals; I don’t discriminate against building wealth and will use whatever tools that are available to me!

With all that said, these days, it’s no secret that mining stocks are HOT! Gold and silver stocks are up over 100% year-to-date (YTD), so naturally, more and more investors are starting to wake up and pay attention. However, mining is somewhat of a niche sector, and not many people know much about it… Education in the space is sorely lacking, and for the most part, mining is an industry that appeals more to someone like your grandpa than it would to say your best friend…

Fortunately, thanks to the internet, these days it’s becoming easier and easier to learn the stuff. And most recently, I came to learn about an enthusiastic young buck who has just come bursting onto the scene. Everyone, I want to introduce you to Fabi, the founder of The Next Big Rush!

Fabi is on a mission to educate the masses (particularly the younger millennial crowd) on mining stocks! What I love about her videos are that they are short, simple, to the point, and she has found a way to masterfully take an esoteric topic like mining and break it down in a way that makes it totally understandable and easy to assimilate for anyone (especially beginners).

Making money in mining ain’t exactly all that complicated, as Fabi will show you. It sure don’t take no Calculus to make some serious coin playing this space!

Here’s a recent video of Fabi talking shop with Nick, aka MiningBookGuy, who is another one of my favorite resources when it comes to learning about mining stocks (especially early-stage exploration stories).

So, for anyone who is new to mining, I would highly, highly encourage you check out the video above, and to subscribe to both YouTube channels!

Also, here’s a most recent interview that I recorded with Fabi. For anyone who is interested in hearing essentially my entire early FI journey recapped in less than an hour segment, here it is!

As always, I do my best to just tell it like it is… In the video above, we go over: my background history, how I got started with early FI, investing in dividend growth stocks and real estate, market timing fear and greed, and how I got started with mining stocks in 2015.

 

I hope you all enjoy the two videos above! Thanks again to Fabi for giving me the opportunity to record the interview and share with everyone!

 

Fight On!

{ 5 comments… read them below or add one }

1 Investment Hunting September 2, 2016 at 3:36 pm

Thanks for sharing. I’m interested in investing in this sector, but I don’t know much about it. It looks like I have some homework this weekend.

Reply

2 Income Surfer September 3, 2016 at 5:06 am

Thanks for the new content buddy. I always like being introduced to other investors and bloggers. Good luck on the next leg of your trip….and great timing on that Wednesday purchase. Let us know your new schedule once you’re settled
-Bryan

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3 Eric Bowlin September 4, 2016 at 6:51 am

There are countless paths to wealth in real estate.

Flipping and renting are highly correlated fields because the numbers are derived the same ways. This is unlike other areas of real estate where each is unique, like developing land, liens, or mortgage lending.

You have to realize you don’t know much about other fields, even if you are a great investor in one area. Same holds true with stocks.

Reply

4 Roadmap2Retire September 6, 2016 at 9:07 am

Thanks for the mention. Happy to share these resources with you.

Too many investors subscribe to one single idea and do not posses the mental plasticity to comprehend new ideas. Buy and hold is a great model and has its place in some portions of investors portfolios. But arguing that it is the only way to go is incorrect and a dangerous mentality.

Thanks for sharing your thoughts. Always welcome new content from your end.

cheers
R2R

Reply

5 Paul September 6, 2016 at 2:59 pm

Hi there,

For a brief story about a company I would suggest http://www.goldstockdata.com/ – you don’t have to subscribe at this site.

For more information about how this world is going visit http://www.zerohedge.com/ and also http://alt-market.com/ and more at http://www.thedailybell.com/

These are all sites to get you all get on the road on what is going on in this world and together with FIfithter.com to get your own mindset about investing in Gold and Silver.

Greetz and good luck !!

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