Never Speculate on People
Rarely do you ever hear of a car accident due to a vehicle malfunction.
In almost all cases, it’s the humans driving the vehicle that are responsible.
This is the case for planes, guns, nuclear facilities, etc. as well. As horrible as the accidents can be, it’s almost never from malfunctioning equipment.
Upon further investigation, it’s the people who overlooked something, didn’t make the right decision, or were simply reckless.
One of the best pieces of advice ever given to me is to never speculate on people.
Businesses can be speculative and investments can be risky, but the people you trust shouldn’t be.
Oftentimes, investors overlook the most important part of a company, and that’s the people.
Take a company like Disney, for example. It has a great brand, with some of the best assets in the world.
Its entertainment is second to none, from Marvel to Pixar, cruises, and, of course, their crown jewel, Walt Disney World.
But even with all of this, without their culture of over-delivering and hiring the best people (cast members), Disney wouldn’t be one of the most recognized companies on the planet.
Over the next few months, many investors are going to pour money into the gold sector.
Investors love to chase a rising asset. We saw it with Bitcoin, the Dow Jones, and we predict that by the end of the year, investors will be flooding into a gold rally.
They’ll wait, of course. First, it will go to $1,400, then $1,500, and then as it finally approaches $1,600, the money will flood into the sector at exactly the time we’ll be taking some profits off the table.
As we take strategic positions in this sector, I want to de-risk our human component by suggesting we follow two strict rules before even looking at a single mining share:
1. Management must have skin in the game. Not at some insiders’ founder price, but I want to see them buying at the outsiders’ price.
2. Proven winners are a must. There is absolutely NO on-the-job training when it comes to helping us grow our money.
This is why this past week, I’ve strongly suggested our members consider shares of First Mining Gold (TSX: FF & US: FFMGF).
Their new CEO is using his entire first year salary to purchase shares of the company on the open market. He gets no special discount – he’s buying at the same levels we are.
The chairman doesn’t even take a salary. Instead, he’s opted for stock options to purchase the company. Even though the stock currently trades for CAD$0.54, his options price is for CAD$0.60.
Keith Neumeyer, chairman of First Mining Gold, has also purchased millions of shares on the open market and is one of the biggest individual shareholders of the company.
The people in this company have skin in the game, a strong incentive to increase its value, and they all come with very successful track records.
For Keith, it’s actually his third company. In the 1990s, he created a billion-dollar copper giant, and in the early 2000s, he launched a tiny silver company that is not only a billion-dollar company today, but is the purest primary silver producer you can buy on the public markets.
Don’t speculate on people, especially in the mining sector.
If you own shares of mining stocks or are about to take a position, consider buying shares of First Mining Gold (TSX: FF & US: FFMGF).
Editor’s Note: Right now, you can also buy First Majestic Silver (NYSE: AG). It’s Keith’s silver company, which is the best silver company you can own today, in our opinion.
Since I mentioned it, I should add that Disney (DIS) is also a great buy today. Consider shares of Disney at up to $115 per share.
If you have children, you can actually buy DIS for them directly, and even have a special share certificate sent to them. It’s a great way to teach kids about owning a stock in a business they can truly understand.
Legal Notice: This work is based on public filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.
Never base any decision off of our advertorials. Future Money Trends stock profiles are intended to be stock ideas, NOT recommendations. The ideas we present are high risk and you can lose your entire investment, we are not stock pickers, market timers, investment advisers, and you should not base any investment decision off our website, emails, videos, or anything we publish. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this profile was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. Never base any investment decision from information contained in our website or emails or any or our publications. Our report is not intended to be, nor should it be construed as an offer to buy or sell, or a solicitation of an offer to buy or sell securities, or as a recommendation to purchase anything. This publication may provide the addresses or contain hyperlinks to websites; we disclaim any responsibility for the content of any such other websites. We have been compensated by First Mining Gold, five hundred thousand options for a one year agreement. We have previously been compensated six hundred thousand options for past years agreements, none of our options have been exercised. In addition to options we are currently managing a marketing budget of two hundred and fifty thousand dollars, paid for directly by the company. We are currently in a one year agreement with First Majestic Silver, we have been compensated with twenty five thousand options, and thirty thousand dollars. For prior expired agreements we received an additional fifty thousand options, none of which have been exercised. We currently own shares of Disney and are long the company. Please use our site as a place to get ideas. Enjoy our videos and news analysis, but never make an investment decision off of anything we say. Please review our entire disclaimer at FutureMoneyTrends.com