I’ve had the experience of being able to speak with some of the greatest investors and speculators on the planet, thanks to this letter and our weekly podcast. Oftentimes, we even meet with the guest in person. I greatly value both the on-camera interview and off-camera conversations.
An important strategy and lesson that I’ve picked up from all the great ones is so simple, yet most investors will completely ignore it. The best investment strategy I can give you is to always partner with the right people. Valuable assets, cash-flowing businesses, and great ideas are doomed if you don’t have gifted people at the top.
When I say gifted, I am talking about that special charisma or relentless passion only 1 in 1,000 people prove to have. The Steve Jobs, Michael Jordans, or Oprahs of the world.
I remember when I first met Rick Rule and he told me that looking back at the last 4 decades of his successful investment career, he could have just stuck with a handful of partners and had nearly the same results. In the end, it was a core group of partners that kept returning big gains, decade after decade.
Marin Katusa, who I believe is going to one day be a billionaire, more than any other investor I know, has urged investors to attach themselves to a few proven winners and just stick with them, making money for decades. One of the people I have attached my own family’s money to -- making both of his companies my largest positions -- is Keith Neumeyer.
Keith has already made thousands of investors a fortune, and I have no doubt that he will continue to do this for the rest of his life. When I met with him a few weeks ago in Austin, Texas, he was making rounds all throughout Texas, meeting with strategic investors, current shareholders, bankers, and brokers.
I asked Keith, “Why are you still doing this? First Majestic Silver (AG) has over a billion-dollar market cap, you have 4,000+ employees, and it’s the most widely-known silver company in the world.”
His answer, “I’ve been doing this for 14 years straight, and it’s one of the reasons we’ve been so successful in preserving and growing shareholder value.”
What everyone needs to understand about Keith Neumeyer is that he won’t stop – ever! He refuses to lose. In fact, I don’t think he even knows how to lose. First Majestic Silver is the top-performing stock for the entire S&P/TSX Composite Index for 2016. I have no doubt that it achieved this because Keith is doing everything he can to bring awareness to this company.
By the way, he’s never sold a single share of AG… Think about how many shareholders have paid off mortgages and funded college educations with the profits he’s delivered, and Keith has never taken a profit for himself since starting the company in 2002!
With First Mining Finance, his new company that still trades for under $1, he doesn’t even take a salary! Yet he’s purchased millions of shares on the open market, the same way the rest of us buy this stock.
First Mining Finance (TSXV: FF & US: FFMGF), in 1 year, has acquired nearly all gold resources in eastern, Canada. He took this company from zero to almost 15 million ounces of equivalent gold, and is set to close on their 8th acquisition by the end of June.
If I had to put all my money on one stock, in my opinion, I would have to go with First Mining Finance, because Keith is just getting started with this one, and already they’ve accomplished in 1 year more than even the other good companies have been able to do over the course of 5 to 10 years!
My advice to everyone reading this is attach yourself to winners like Keith Neumeyer. The gains investors are about to see in the resource sector will be nothing short of spectacular, and you want to position yourself now with the right people, the management teams that know what they are doing, with the talent to both advance their companies and deliver on increasing shareholder value.
To listen to my most recent interview with Keith Neumeyer, click here.