Bob Gauld, 70
Retired controller for a U.S. manufacturer
The portfolio
About 65 per cent in mining companies with metals in the ground, including Goldcorp Inc. , Barrick Gold Corp. , and Silver Wheaton Corp. , and the remainder primarily in blue-chip dividend-paying stocks.
The investor
Despite – or perhaps because – his father was a bank manager who thought anything more than GICs were risky, Bob Gauld's approach to investing has always happily welcomed risk. Not only did he quickly realize as a CA that, between taxes and inflation, GICs wouldn't leave him much further ahead, he says he had a natural love of investing, particularly mining stocks. "And the thrill you get when you see something go from almost nothing to many dollars."
His mining stock strategy
Management is a key criteria for Mr. Gauld. "I look at what they've done in the past, who they have working with them, if and they've hired someone who can bring the project to fruition." The most important factor, though, is that they have prior success. "The same guys will do it again and again and again." He prefers projects where the mineral is close to the surface, the mine has easy access to infrastructure, and production is imminent.
His love of investment clubs
Mr. Gauld is active in two investment clubs. One meets monthly, with the focus being to have members explain why they may have bought or sold a stock over the last 30 days. The second club meets to hear presentations from representatives of companies the organizers have decided will be of interest. "When I was working, I really enjoyed coffee breaks where you would meet and speak with people from all over the company. These clubs ... take the place of that for me."
Best move
Mr. Gauld is a big fan of Silver Wheaton. Years back, he had invested in Wheaton River Minerals, which merged with Goldcorp in 2005. Goldcorp then sold off shares in Silver Wheaton, making it a pure-silver play. Mr. Gauld feels there's a good chance of strong inflation if the world economies continue to remain unstable, "and that will make gold and silver a good place to be."
Worst move
Mr. Gauld readily admits he "fell in love" with the Yellow Media Inc. story, as well as the strong yield – around 12 per cent when he bought it two years back at $6.75. But the once blue-chip income trust has cratered, last closing at 14 cents. Mr. Gauld dumped most of his holding just before Christmas at just 19 cents, the only upside being he was able to use the loss to offset other taxable capital gains.
Advice
"I really believe you've got to educate yourself. And don't let anybody have complete control of your assets. Even if you're dealing with a broker, say 'I'll check it out and get back to you.'"
Special to The Globe and Mail
Want to share your strategies?
tony.martin@sympatico.ca