Tips for a Prosperous 2013:
The Best Investing Advice Ever

Source: Karen Roche of The Gold Report  (12/31/12)

New YearsThe Gold Report shares investing ideas from some of the smartest people in the precious metals mining sector—analysts, money managers and newsletter writers including Rick Rule, James Dines, Doug Casey and Porter Stansberry. That was founder Gordon Holmes' vision in 2003 when he started the publication after receiving these words of wisdom from GoldMoney Chairman James Turk: "Buy gold." As the former publisher of Buyside magazine, Holmes set out to create a publication that would interview a wide array of experts and feature in-depth stories about macro-trends and individual investing ideas, but let the readers make their own decisions. In 2008, Karen Roche joined the team as president and grew the parent company, Streetwise Reports, to four newsletters, including The Critical Metals Report, The Energy Report and The Life Sciences Report.

To celebrate the New Year, Roche asked some of our most popular interviewees to share The Best Investing Advice They Ever Heard. Most of it falls into a few basic areas we already know: "Buy low and sell high before the cycles start all over again." Some is contradictory: "Be cautious, but take risks." Some made us laugh out loud. Consider it our New Year's gift to you as we all get ready for an exciting 2013 in the world of junior mining investing.

Karen Roche "My best investing advice came from Eli Broad, founder of Kaufman & Broad and CEO of Sun America. Eli told me, 'Don't worry about what you are going to sell something for. Only worry about what you buy it for. If you buy right, you'll always be able to make a profit.'"
– Karen Roche, President, Streetwise Reports



Rick Rule "The best investing advice I ever received, I read in Ben Graham's Intelligent Investor—the chapter on 'Mr. Market.' The fact that the market as a whole is a manic-depressive and he's a business partner of yours.If you get information from a manic-depressive, it's not a good thing. If you trade against his mania and his depression, he's the best partner you could possibly have. I've told people for years that, in an extremely cyclical business like natural resources, you have two choices: you can be a contrarian or you can be a victim. What I'm really doing is applying cyclicality to Ben Graham—it's the same message, I just have a catchier slogan."
Rick Rule, Founder and Chairman, Sprott Global Resource Investments Ltd.

John Hathaway "I had a finance professor at Darden, a very conservative guy: He wore both a belt and suspenders—he had backup systems. He said something that I've never forgotten: 'To be successful in investing, there's only one thing you need to know. You have to know when to sell.' The most successful investors are the ones who know when to sell. And you only know when that is with 20–20 hindsight."
John Hathaway, Senior Managing Director, Tocqueville Asset Management


Frank Barbera "The best advice I ever received was not to buy and hold anything, but to maintain a tactical approach and be flexible. In difficult economic times, your biggest single advantage is the ability to be tactical, to be nimble and to react to changing market conditions. The one big positive most investors have right now is that the menu of potential investment vehicles has really grown in recent years, including a proliferation of exchange-traded funds (ETF) and mutual funds. These are the kinds of products I think will be very useful over the next few years in helping people tactically navigate the kind of economic conditions coming our way."
Frank Barbera, Editor, The Gold Stock Technician

Louis James "No matter how far down something has gone, until it hits zero, it can still go down farther. The good news is that precisely for this reason, markets tend to overdo things. They are volatile. They fluctuate. They get manic and go too high, and get depressive and go too low. But that's actually good for those with the discipline to buy. . . .I've done a number of things wrong, there are a number of things I might do differently, but one common mistake I haven't made is to assume that the beneficial results of a bull market are because of my particular genius. I've been cautious and disciplined. . . .But it is that discipline [that's important]; you have to know yourself, you have to do something that you care enough about to do the hard work."
Louis James, Senior Editor, Casey Research

John Doody "The best investing advice was something where I did the opposite. When I left teaching in 1993 to start the newsletter, all my professors—economists, finance guys—told me, 'Don't do that, John; you're crazy. Why would you leave the ivory tower to go out and get into the real world of business?' Well, twenty years later, my personal wealth is in the eight-digits."
John Doody, Founder, Gold Stock Analyst

Harry Dent "You have to think contrarian because it's just human nature for people to pile into something, especially in these bubbles we've seen. They pile into tech stocks or real estate thinking they can't go down and then the bubbles burst. I learned early on to think contrary to the crowd. Right now, most investors think these markets can't go down because the Fed won't allow it. They call it 'the Bernanke Put.' Well, if everybody's thinking that, then I don't think that."
Harry Dent, Founder and CEO, HS Dent

Eric Sprott "I think the best piece of advice I have received was always try to buy a company with a low price-to-earnings multiple or a low price-to-cash-flow multiple, particularly one that's a little out of favor because ultimately if it's sustainable, it will attain the valuation that's appropriate in the market. That's why we typically look at small to midsize companies that are under-followed where we can see opportunities that maybe others haven't."
Eric Sprott, Founder, Sprott Asset Management Inc.


David Morgan "It sounds trite because it's said and people don't do it, but cut your losses and let your winners run. [It's hard to do] but that's one of the best because if you're able to sell, you are doing the opposite of what most people do—most people sell their winners and hold their losers. No, investors should cut their losers and let their winners run because if investors have one stock that's going to make 100 new highs over a 10-year timeframe, that's the one you want to keep all the way up."
David Morgan, Publisher, The Morgan Report

John Williams "I can't really say I've had much in the way of investment advice, I've madeup my own mind as I go along. The best investment advice I ever gave myself was to buy gold."
John Williams, Founder, John Williams' Shadow Government Statistics





David Stockman "My investing model is ABCD: Anything Bernanke Cannot Destroy: flashlight batteries, canned beans, bottled water, gold, a cabin in the mountains."
David Stockman, Former U.S. Representative from Michigan, Former Director of the Office of Management and Budget and author of the soon-to-be-released The Great Deformation: How Crony Capitalism Corrupts Free Markets and Democracy.


Bob Moriarty "Ignore everybody. Why would I pay attention to other people? I have access to the same facts, and I need to make up my own mind. That sounds egotistical, but people need to understand that they must learn to think for themselves. I'm just a well-read guy who travels a lot, does some research and long ago learned to think for myself. I am not a guru. There are no gurus…I talk to myself, but I don't listen. It's not a sign of insanity to talk to yourself—only to listen to yourself."
Bob Moriarty, Publisher, 321Gold and 321Energy

Marin Katusa "The best advice I received came from two people: Doug [Casey] always said 'focus on people.' Rick [Rule] told me to 'focus on the people of your generation to reap the rewards for the next 30 years.'

The number one [piece of] advice that I would give anyone is that before you buy anything, go to these free shows and figure out if you even like this sector. If you don't enjoy learning about it, if you don't enjoy the type of people who are in the business, you're not going to succeed in investing in this business. So, follow your passion, whatever that may be, and you will succeed."
Marin Katusa, Senior Editor, Casey Research

Peter Grandich "There are bulls, bears and pigs. Bulls and bears each have their days but pigs always end up in the slaughterhouse. . .Those who use a crystal ball end up learning how to eat a lot of glass…Better to be far too early than a day too late. . .The boat someone tells you is ready to sail without you is in fact a ferry. When one ferry leaves, another one soon arrives."
Peter Grandich, Founder, Grandich Publications



Adrian Day "Stick with quality; good things tend to happen to good companies, while we should never be surprised if something bad happens to a bad company, no matter how cheap the stock may be."
Adrian Day, Founder, Adrian Day Asset Management




Joe Foster "My mentors of the '90s, John van Eck and Bill Trebilcock. John advocated Austrian economics, while Bill knew the importance of valuation and fundamental research. Business school taught about Monetarists and Keynesians, but had little time for Austrian economics. Austrian free market and sound money principles resonated with me and guides our macro-outlook for gold. Likewise, our investment decisions stem from Bill's 'old school' methods of due diligence and financial modeling, which I have been able to enhance with the help of the computer and flat-bed airline seats."
Joe Foster, Portfolio Manager, Van Eck Global

Danielle Park "Never buy what someone else is selling you on, and never buy unless you have already defined your sell rule in advance."
Danielle Park, Co-Founder, Venable Park Investment Counsel





Chris Berry "Always work to cultivate your emotional intelligence. Knowing your strengths, weaknesses, and biases as an investor can help you determine whether or not you're making rational decisions in an otherwise inherently irrational and inefficient world. . .Don't fall in love with a project. There seem to be an inordinate number of 'world class' exploration properties in the world today. One mustn't forget that other factors, including management ability, geopolitics, catalysts, and financial sustainability."
Chris Berry, Founder, Mountain House Partners

Brent Cook "Investment decisions should be made on your assessment of the data and that conclusion should be constantly reevaluated with new data. Do not believe the market knows more than you and there are no called strikes in this game. Wait for the perfect pitch."
Brent Cook, Editor, Exploration Insights



Jordan Roy-Byrne "First, someone told me, 'I'm looking for things that are certainties.' This is subjective, but in other words, we don't want to take chances. The second is, 'In a bull market, try to buy at the lowest price possible.'"
Jordan Roy-Byrne, Editor, The Daily Gold




James Turk "Always invest in accordance with the primary long-term trend. To do this, put away your preconceived notions about what prices should be doing and instead, look at what prices are actually doing."
James Turk, Chairman, GoldMoney




Mickey Fulp "A day without learning is a day wasted."
Mickey Fulp, Mercenary Geologist






Jeff Clark "My grandfather was a very successful hobby investor after retirement. He did not speculate, but he would find the strongest dividend-paying companies that he could at the time. This was 10 to 15 years ago, so dividends were paying much higher than they are now, but there was still risk, so he spent a lot of time at the library studying. He told me, 'Do your own homework.' My grandpa went to dinner with a bunch of stock brokers. . .and brokers were so impressed with him. They asked, 'Who do you work for?' and he said, 'Myself.' They asked, 'You mean you're not a stock broker?' He was so knowledgeable, that he actually knew more than these stockbrokers did about some of their favorite companies."
Jeff Clark, Senior Precious Metals Analyst, Casey Research

"Cut your losses early. Let your winners run. . .Steve Sjuggerud taught me that within the first 10 days of starting my career in financial research. He taught me that trailing stocks won't ever optimize your return in any given trade but if you don't find some way to mechanically cut your losing positions then sooner or later, one of them will wipe you out. I believe that wholeheartedly. Whether you limit risk through very small position sizes or you limit risk by cutting positions that are going against you, you have to find some rigorous way of maintaining risk discipline or it's only a matter of time until one investment will wipe you out."
Porter Stansberry, Founder, Stansberry & Associates Investment Research

"As a founder of the field of Technical Analysis, the best investing advice I ever got was from the market itself, from Technical Indicators and chart trends."
James Dines, Publisher, The Dines Letter

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