Update, December 5 2023
Gold, GROY, LL Flooring and more
Gold posted its highest close in history on a daily, weekly and monthly basis last week.
It’s pulled back a bit after spiking way up to $2146 in futures trading early Monday morning, now at $2022 as I type.
History is being made. Savor it. Remember it.
Take full advantage of it, or your future self will be looking back in regret like my dear friend Mike does.
In stark contrast some terrible, though also inevitable, news in the financial world…
R.I.P. Charlie Munger, one of the greatest to ever play the game and Warren Buffett’s right-hand man, who died last week just a month shy of his 100th birthday while still at the peak of his powers and influence.
On the topic of influence, I listened to an old speech of Munger’s recently on psychology in investing. Being relatively new to Munger worship I was very pleasantly surprised to find we share similar views on market psychology, and to hear him speak in very strong language about a favorite book of mine.
Of Robert Cialdini’s iconic book “Influence: The Psychology of Persuasion”, Munger said:
You will immediately order copies of Cialdini’s book for all your family and friends. You will never make a better investment.
- Charlie Munger
I’m often asked what books I recommend, and plan to write an entry on that someday. Meanwhile, I’m in agreement with Charlie on “Influence”.
GROY - Gold Royalty Corp.
My average is $1.96 across 4 positions.
In October I’d stated that I “will look to add warrants when it’s above $1.50”
No GROY warrants for me, nor will there be.
LL Flooring
LL has been up as much as 20% from the average price of my 4 recent entries.
It closed today at $3.50
If it drops below $3.44 I’ll cut my 4 positions in half by booking what at that price would be a 17% gain on both of the most recently purchased 2 positions.
The latest AAII (American Association of Individual Investors) survey shows the lowest bearish percentage since the market’s peak early in 2018. Stocks plunged twice that year; into summer, rebounding, then posting the worst year-end ever while crashing from October until Christmas.
Natural gas hasn’t been profitable here - quite the opposite - but I fully expect to do very well in that sector over the longer term. It was always a long term idea, with the expectation I might be adding positions much lower when the timing’s right. No rush.
Big banks are going our way. Three swings in BNKU have been sold for excellent short-term profits while the original entry is up 15% in just under 9 months.
Still no stop on that position, keeping a longer term outlook.
If - when - a banking crash does occur, I’ll multiply my exposure. What happened earlier this year in financials was just a tremor.
Eventually there will be disorderly markets and true capitulation, across the board, but we've seen nothing of the kind in years.
Headlines without comment:
Searches For 'Trailer Park Near Me' Erupting
US Joins 21 Other Countries In Pledge To Triple Nuclear Energy Capacity By 2050
US Boat Sales Set To Sink To Decade Low
FBI Conducts Record Number Of Background Checks On Black Friday As Gun Demand Surges
You Thought Murder Hornets Were Bad? The "Super Pig" Invasion Looms
Chrysler Building's EU Co-Owner Goes Bankrupt
ISM Manufacturing Contracts for the 13th Consecutive Month, Order Backlogs Plunge
Disney Admits Woke Strategy Pivot Has "Adversely Impacted" The Company, SEC Filing Reveals
Wondered about your cryptic comment about not going for warrants despite GROY being above target price?