Co-chief investment officer at Front Street Capital
WORST INVESTMENT I was 15 years old when I purchased silver bullion in 1979. My Grade 12 economics teacher told my cousin and I that silver was going to go to $100 (U.S.) an ounce. I believed him. I bought 10 ounces at $32 an ounce, watched it go to $50, and then sold in the early part of 1980 at $12 an ounce.
HOW I WOULD INVEST A $100,000 WINDFALL I would put 50% in energy, and invest in oil [with companies like Bankers Petroleum and Crew Energy] and some energy service stocks. Economic forces originating out of Asia and Latin America are creating lots of pressure in the basic materials world, so the other 50% would be in copper, nickel, zinc and metallurgical coal. I like base-metals producer Lundin Mining and Capstone Mining, a pure copper play.
ADVICE FOR INVESTORS Expect more volatility over the next 10 years. Stick to your game plan driven by your age, needs or wealth. In bullish times, you have to tone down your euphoria. In times like today, you have to tone down the fear. You need to be patient and to have a long-term horizon to be a successful investor.
