How NOT to be a Deep Value Investor, Part II; Best Trade Ever?

Remember two years ago?      http://csinvesting.org/2015/01/12/how-not-to-be-a-deep-value-investor/

The inevitable loss when you pay massive premiums over net asset values.  Or you can short the closed end fund for profits.

Two years later, down 12% on CUBA, a closed-end fund investing in Cuba.  The closed-end fund traded at a 70% premium to net assets–so the market is efficient all the time?


Ivanhoe and a small investor’s success

An Investor Greatest Investment Ever_Ivanhoe

An Investor Greatest Investment Ever_Ivanhoe

With full disclosure I also bought in late 2015 and 2016 at an average price of 65 cents and still holding. Why? Three tier one assets in the Congo and South Africa with a world famous promoter.  However, I kept my position 1/2 size unlike the other speculator.   These cyclical resource stocks require years of patience.

 

2 responses to “How NOT to be a Deep Value Investor, Part II; Best Trade Ever?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.