Lars Christian Haugen
Lars Christian Haugen
Occupation: Sales support representative at the Macro Research Board
The portfolio: Includes shares in Cameco Corp., VimpelCom Ltd., Stargold Mines Inc., and units in the Global X FTSE Greece 20 exchange-traded fund.
The investor: Lars Christian Haugen learned about investing from his dad. After reading a book about Warren Buffett, he decided to become a value investor.
How he invests: He is drawn to companies whose shares are shunned and marked down. But there must be a catalyst for a recovery. "I don't buy just because the shares are cheap," he says.
Take the uranium industry. "Prices have remained low mainly because of the oversupply that resulted from Japan shutting down all their nuclear reactors after the Fukushima [accident]," Mr. Haugen said. "But prices should start to increase once the supply glut clears."
Russian stocks are also of interest. Although the Ukraine situation and plunge in oil prices has frightened off investors, Russia's finances remain in good shape. He invested in telecom firm VimpelCom because its shares were relegated to the bargain bin due to exposure to Russia and Ukraine.
Best move: In January, 2013, he made a bet that the yen would decline. So far, the return "has been about 50 per cent."
Worst move: He bought the Greek ETF at the end of 2013 because it was extremely cheap. "This ETF is now down 50 per cent, but I am confident it will recover during my time horizon of 10 years or more."
Advice: Be patient. "It can take years for the market to realize the value of your investment. You have to also be thorough in your research because when your shares fall in price you need to have the conviction to hold on."
Want to be in Me and My Money? Contact Larry MacDonald at mccolumn@yahoo.com or his Website.