October 23, 2013
[su_quote cite=”Ralph Marston” class=”wwd-post”]”What you do today can improve all your tomorrows.”[/su_quote]

Dear Member,

Do you have the commitment of a Viking?

Legend has it that upon invading a new frontier, Vikings would burn their own ships. The idea being that this would guarantee victory by committing the soldiers to conquering the territory.

It’s possible the Vikings knew how the mind works, humans instinctively seek safe harbor in difficult situations. Many of us today are all too familiar with an opportunity or massive gain in an investment that we missed out on because we simply lacked the commitment.

More than anything, I want members to share in the fun of creating wealth.

In life, you are going to have to make some strategic commitments because the decisions you make right now will effect the outcome of the rest of your life.

Becoming wealthy is a choice, pure and simple. If you commit right now to making wealth generation a priority, I have no doubt that you can ultimately live whatever kind of life you want.

Commit to your investing, education, and own business like a Viking, and I can almost guarantee you success!


Hiram M.

I am down on a stock I just bought, should I sell it?

It all depends on what we are talking about, if it is a large cap company that you know you bought at a discount, I honestly would recommend you only sell it if you absolutely have to. You are far better off holding it and allowing the compounding effect to take its course.

If it is more of a speculative trade that you are expecting a large return on, you have to ask yourself, would you buy it today if you didn’t own any shares? If the answer is yes, then I would hold and consider buying more on the dip.

You have to remember that speculative trades are inherently going to be more volatile, but remember volatility doesn’t equal risk. The dollar value of your trading account will absolutely wreak havoc with your emotions, but it doesn’t add any risk to your position if the business is sound.

A good business whose share price is down is a buying opportunity.

Sarah T:

I just bought BRI shares, what should my exit plan be? Should I wait for it to go up a certain percentage?

For more speculative trades, I think your exit strategy should align with the company achieving its goals. You will have to decide if this strategy works for you; if it is, I would encourage you to commit to it and don’t be shy about knowing what is going on with your money. Call BRI, get to know the people, and stay connected.

For BRI, their objective is to become a mid-tier gold producer, so we are still in the infancy of this junior gold company. Lucky if you ask me because gold is at a low and the junior miners themselves have been hit very hard in the bear market, so the upside is enormous for companies that can ultimately deliver value to their shareholders.

To become a mid-tier producer will take years, but it’s like Marin Katusa stated, his biggest gains have taken 5+ years and we are talking about millions of dollars that he has made simply because he committed his money to staying the trade. Marin’s personal story is incredible. Before he became a multi-millionaire, he was a teacher who borrowed over $100,000 to buy a junior miner, the stock literally collapsed. He calls this moment his valley of darkness, when he had to re-look at his investment and decide if he was right or wrong. Obviously the rest is history and he was right and his original investment turned into millions of dollars.

Ideally, next time try and have your exit strategy before you enter any investment. You need to have an objective to commit to if you want large net worth changing returns like Marin.

Tim A.

Why would I buy something that keeps going down? Uranium has had one direction since 2010 and I don’t see why that will change.

Please re-read our profile, in it we cover exactly why we believe uranium is set for a dramatic price increase and why UEC will be a huge benefactor of that rise. In that report we stuck with the numbers, it clearly shows an inevitable rise, and with the Russian nuclear warhead treaty ending next month, we believe the rise in uranium is imminent.

Remember, uranium mine production has NOT been able to keep up with demand for 20 years, it is only due to the conversion of Soviet-era warheads into uranium that has kept the supply up.

Demand by the numbers

432 Reactors operable in 31 countries today
68 New reactors under construction
162 Reactors planned
316 Reactors proposed
13.5% of all electricity comes from nuclear, 20% here in the U.S. and 75% in France

As legendary resource investor Rick Rule has said, “These investments take courage. It’s easy to buy when something is going up, but remember in order to sell high, you have to buy low.” Uranium right now is at a low; and in my opinion it is time to buy.

Deven L.

Do you have a way to buy real estate across the country?

Yes, we currently use the Marshall Reddick Real Estate Network, whom we have NO business relationship with. With the exception of course of being their customers, we have purchased several properties through them.

They can help you find a cash flowing property in the south or midwest. I don’t recommend investing for appreciation, though they have those options as well.

When it comes to real estate, treat it like a business, look for a low P/E ratio so that you can pay it off and enjoy a cash-flowing property for the rest of your life. Anything below a GRM of 7 is a buy, that means if you take the annual rent, say $12,000, the most you should be willing to pay is $84,000. Sticking with this rule gives you a nice margin of safety and practically guarantees you real estate success.

I will be speaking at a wealth building conference this weekend, if you would like to join me, use this link.

Have a prosperous week!

Daniel Ameduri

Share Disclosure: I am long UEC and BRI.