How do you invest like a pro?
What formula allows you to increase your chances of selecting a winning stock?
What research should you be focusing on when looking into an investment?
Continue reading because you’re about to find out from one of the industries best stock pickers Marin Katusa.
If you’re not familiar with Marin Katusa you need to be. Legendary investor Doug Casey called Marin one of the most disciplined stock pickers in the industry.
Marin runs a prominent hedge fund in the junior resource space and leads a word-class team of researches at Katusa Research.
So how does a prominent hedge fund manager determine where he is going to invest? Let’s find out.
- People: It all starts with people. You must have the right team no matter what business you’re in. If your on the 2 yard line with 3 seconds on the clock you want to know you have Mr. clutch on the team.
- Structure: What is the business plan? How are they going to execute the business plan? You want to make sure their debt is minimal and their stock allocation is not over diluted. Also, stay away from streaming and royalty deals. Marin calls steaming and royalty deals the noose around equity shareholders necks.
- Invested Leadership: Is the president or CEO fully invested? What percentage do they own? Are they buying when you buy? How can the leadership truly believe in the business if they themselves are not invested. If the leadership is not fully invested then they will be off to the next thing if things start to go awry.
A great example that Marin uses is Amir Adnani from Brazil Resources (BRIZF). Amir has taken Brazil Resources from zero ounces of gold to over nine million ounces of gold with minimal stock dilution and debt.
Marin also points out that Amir has raised necessary funds without finders fees being paid. “These are the little variables that make all the difference,” Marin says.
Be sure when looking for your next investment to dig deep and review the small things that make a huge difference in a companies success. Don’t just read mainstream advise, rather study the people, structure and find out wether the leadership is invested.