Rick Rule: You’re Only Ever a Contrarian or a Victim in Natural Resource Investing

Stansberry Research, Released on 3/4/24

On this week’s Stansberry Investor Hour, Dan and Corey are joined by Rick Rule. Rick is the president and CEO of Rule Investment Media. With nearly 50 years of experience managing investments, primarily in the natural resources sector, Rick is an authority. And he joins the podcast to share his thoughts on valuation models, uranium, and four commodities that could be worth investing in. Rick kicks the show off by going into depth on models, such as the discounted cash flow model. He talks about the flaws with models, why models are only useful for apples-to- apples comparisons, and how a model can be used on exploration companies or similar companies that don’t have revenues. (0:29) After, Rick goes into detail on the uranium market. He describes why uranium companies have mothballed production, what makes uranium so unique in the natural resources world, the differences between the spot and term markets, and how to interpret uranium companies’ financials. (9:14) Lastly, Rick calls out several commodities that present good investing opportunities today. He describes one of them as “stupidly cheap”… another he says is hated by investors and its market is in disarray… and the final two, he explains, are being sold off because of an incorrect belief that we don’t need internal-combustion engines anymore. Rick even goes one step further and name drops specific companies that could be worth looking into to take advantage of these price discounts. (25:11)

Rick Rule, founder and chairman of Sprott Global Resource Investments Ltd., began his career in the securities business in 1974. He is a leading American retail broker specializing in mining, energy, water utilities, forest products and agriculture. His company has built a national reputation on taking advantage of global opportunities in the oil and gas, mining, alternative energy, agriculture, forestry and water industries. He is also the founder of Rule Investment Media.

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