Usually, I would not consider resource stocks to appropriate value investments for the simple reason that commodity prices are too unpredictable. Unpredictable cash flows and the high levels of capital spending usually required to keep commodity companies functioning, can often result in high levels of debt and a sudden reversal in fortunes. Of course, some times the opposite can be true and resource companies can become ‘rags-to-riches’ stories, although all you need to do is to look at former Brazilian billionaire Eike Batista to see how quickly the fortunes of resource investors can change. However, one company that has been…
Contango Oil & Gas: A Risk Worth Taking? [Part 1]
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk