GOLD is the money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!

Thursday, October 17, 2013

Investing with the Best - Doug Casey & Marin Katusa Interview Oct 2013

Partial Transcript: Thank you for joining us at I'm here at the Casey Summit with Doug Casey and Marin Katusa of Casey Research. Thank you for joining me gentlemen. I want to talk about making money today, of course that's why everybody shows up to your summit. Doug what's one of your favorite investment stories, from your personal investments?

Doug Casey: I don't know, look. I hate private equity, which is to say buying private companies with no prospect of going public, but recently I sold out of an online university that I got into ten years ago, and that was a 13 to 1 hit. So, I'll put money in anything if it looks right at the time, and I love resource stocks because they're so volatile and there's a whole argument that can be built for investing in natural resources, but I'll do anything if it looks like a good deal and it's a right time in the market. So, one thing that I've done is buy a lot of international real estate. And that's treated me well because I bought things that I liked. It's not because I thought I could sell it to a greater fool it's because I actually like it and I liked the price. So I think it's important in the markets, what I'm trying to say in a roundabout way is to be — keep a broad view, and look at everything. Because if you've got 200 countries, there's always a couple at the bottom of a bear market, and there's always a couple that are right at the top of a bull market, and different asset classes, stocks and bonds and currencies. So you have a wide selection of things and you can just pick the very best ones. For instance, Nick Geobrano and I just went to Cyprus, where the stock market is down 98% since it's peak in 2007. Now this is very unusual that a national stock market has dropped not 90%, not 95%, but 98%. And this has got to get your attention. There are stocks in Cyprus right now that are selling at ten percent of book value. So you have to investigate these things, so that's my approach. Marin, what is your favorite story right now, or favorite stories that have you excited.

Marin Katusa: I always try, and it doesn't always work, but I try to invest in what I try to call the A teams, the best management teams that I can find. And right now a few of my favorite stories are where the management owns over 20% of the companies themselves. Because if they have as much risk in the game as I do, I'm willing to take that bet. And they have to have this excess before, also, and they can write checks. And I want to invest in guys that can only come back if I finance them. I want guys who can do it without. That's one of my little rules of thumb. I really like backing the next ten members, such as Amir, such as Nolan, such as Morgan Polack. These kind of guys that I can know that have a great future. And it keeps the explorer leagues, like Keith Hill, or Jim Roark, or Bob Quartermain. And finding these guys, and the beauty is in this bear market you can find the best teams at a discount. Why would I waste my time with the B players. Right. On the next ten list, it's such an interesting list for me as a young guy, because it seems like this is something that you can invest in these people and it can be really your only investments for the rest of your life is these people. Have all of them had some type of major setback? Because I have found in my own personal experience that major setbacks make people better.

Marin Katusa: Builds character, definitely. Let's take Amir with UEC. He had stock up to 7 dollars at the peak of the uranium bubble, and I've known Amir back, he sat behind me in organic chemistry class, so I've known Amir for a long time, and he was the best pitcher. He's a great promoter, I call him the next Robert Freedman. When he pitched Doug and I, I said we're in a bubble here for uranium, I want to see you develop your assets, and then in November 2008, his stock went from seven dollars to 18 cents. And we wrote it up in our newsletter as a buy under 25 cents. Okay? Within two years it ran back to seven dollars. Now, what are these setbacks? Well sheesh, there's a global crisis, he's had Fukashima to deal with, and he took an exploration asset to production. One in 3000 projects ever goes into production. Very few guys have ever been involved in something that has been speculative, to exploration, to development and actually build production. So yes, there's a perfect example of a guy who's had a setback, but he doesn't give up, and he puts more money into the deal. Those are the types of guys you want to back.
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