Mining Stocks Set to Run, Don’t Let Fear Stand in Your Way

With sentiment in the resource sector looking positive, what strategies can investors use to succeed?

Brian Leni, founder of Junior Stock Review, said each person should begin by getting to know themself.

“To me it starts with self awareness. You can’t know what to buy until you know what you want and what you’re best suited to being,” he said at the Prospectors & Developers Association of Canada (PDAC) convention.

For example, a person who doesn’t understand drill results should probably invest in larger mining companies as opposed to exploration stocks. Or, alternatively, they should build a base of knowledge before they put money into the junior sector.

He also encouraged market participants to learn to assign a dollar value to the companies they invest in. Value differs from price in that price is what the market says a particular company is worth at any given time.

“That (value) becomes your sell price. After the company has completed X amount of catalysts, they lead up to hopefully having market recognition and they reach that sell price — at that point you need to sell, or at least begin selling,” Leni said. “What that does is reduce your downside risk and complete the investment thesis that you had prior to getting into the company.”

The biggest mistake Leni sees investors making right now is being susceptible to fear. “The point is you want to go out there, find good companies (and) start deploying money. You don’t have to put it all in — you can do it tranche style — but you can’t let the fear overtake how you want to participate in the sector, because there’s going to be money made in the meantime,” he said.

Watch the interview above for more of Leni’s thoughts on how to invest in the resource sector. You can also click here for the Investing News Network’s full PDAC playlist on YouTube.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.