Palisade Global Conference Wraps Up, Pareto's Law Is In Effect
Investors at Palisade Global's Hard Asset Conference were warned by Matt Geiger, managing parner at MJG Capital, to be picky when choosing which junior to invest in.
Palisade Global wrapped up its three-day conference on Jekyll Island, Georgia today. Some of the headliners were Rob McEwen, Frank Holmes and Marin Katusa. Kitco will be posting video interviews from the show in the coming days.
Geiger says Pareto's Law teaches you that returns in a given group usually come from a small subset.
"You have to be extremely selective in the junior space," said Geiger.
"I am a big believer in Pareto's Law: that 20% of any population is going to result in 80% of the value. And if you take that a step further, the top 4% is going to generate 64% of the value. So when juniors are trying to get you as a shareholder, just focus on the top 4 to 5%."
Commodities are cyclical industry, warns Geiger, and the sector is at a low point.
"You've got to buy when it is not attractive, and you've got to take profits when you see generalists streaming into the space.
"I am very optimistic about these upcoming years, but you have to show patience."
Creative Commons image of dice courtesy of Dave Gough
Thanks to @PalisadeFind's hard asset conference headliners who took time to speak to @kitconewsnow. From top clockwise: @MarinKatusa with @katusaresearch; @geigercounting with MJG Capital; @bulldogholmes with @USfunds 1/1 pic.twitter.com/fj8W802XkJ— Michael McCrae (@michaelmccrae) May 17, 2019