The importance of picking a good solid PM company and sticking with it
I picked up 100,000 shares of SLW.TO for an ACB of 1.25CAD around 2004-5
Rode it to July 2010, cashed out at roughly 16CAD.
Yes, it was a 12.8 bagger as they say.
Thought I did well in 6 years.
Sadly I watched it rise to 49CAD at it’s high in 2011.
That would have been a 39 bagger.
In hindsight, lightening the load as it was rising would have been a better strategy as no one will sell it the very top and no one knows what the price will be.
That same stock has been rebranded as WPM.TO which is now 183CAD. Would have been a 146 bagger over 22 years!
I did buy back a few years ago and hope not to repeat the same mistake. It’s a 4 bagger so far for me but I no longer have as many shares.
Lightening up on the way up to lock in profit but let the rest run until it doesn’t.
For those who have a good Financial Planner, he/she has likely sat down with you to plan your retirement years in advance of the day.
Projecting annual income required for retirement to end of life is a minefield of variables but can be revisited along the way and lifestyle adjusted if required.
Knowing what you need in retirement is important (expense spreadsheet over two years) and add an extra amount (20% possibly to be safe)
Assuming a CPI increase of say 10% with an annual return of the same gives one another cushion so you don’t have to worry. It’s doable.
Protect and invest this required initial amount.
Use the PV of a growing annuity formula or just ask AI to calculate it for you. My WPM.TO holdings while not as large as before, is sufficient to feed my lifestyle as long as it grows in value 10% a year. I know I will have to sell it at some point.
My guess is that most of us here do not need a huge return for themselves. They have there nest egg protected. It would be for a legacy. Charity or Family.
Or as a hobby or challenge in these crazy times.
Instead of picking one, or when picking one, don’t simply Sell all at once.
Buy in three (?) traunches, and trim or rebuild over time based on sentiment using higher time frames (monthly or quarterly).
Eg, hold last traunch as long as mo or qtr MACD remains positive.
Back in the hay-days of The Tent when we were all together, I organized a get together near Estes Park outside of Denver. Had about 8 guys and their wives with them – rented a nice cabin, hung out, swapped stories, enjoying the big ride to riches.
I stayed in contact with the Eagle Eye gang for quite awhile after that. SOEE and EEOS…
I was pretty flush with cash along about 2012/2013. I contacted SOEE to see if he had a call option recommendation for me. He recommended putting $2K into an in-the-money call position in SLW. Within two weeks I was sitting on $10K. I was freaking out, didn’t know whether to sell or hold. Then it started turning south on me.
I held another week and unloaded at $8k – for a nice $6K profit in less than a month. I’ll tell you, SOEE knew his stuff – and I’m sure he still does. That brief moment in time was one of a handful of thrills riding the gold and silver bull.
The first time I visited his house in Denver he was working in his “office” – a desk set up with three monitors and a direct link to EE. What they were tracking with charts blew me away. That’s when I realized I was and always would be an amateur at this stuff.
I look back and think of the times I sold early or on the way down.
Oh well, the retirement pile is still intact and I am playing for fun (I guess) with the rest.
My concern is not financial it’s what our Governments have in store for us.
This time, I have a group of like-minded individuals here to offer insight:)
During the last two PM runs I participated in, I was on my own.
This time I know that the sovereign debt problem as well as all the debt(Currency loaned into existence) can not be solved. Working in our favour.
Just hang in there.
Yep, Been there done that. Not even going to tell you what I did with the Altius shares back in 2003..Ugh