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Gold and silver expert Don Durrett explains how investors should analyze mining stocks (0:35). 3 undercovered names (14:10). Differences between explorers, producers, and developers (19:00). Gold corrections (28:45). This is an excerpt from a recent webinar.
Transcript
Daniel Snyder: Hey, everyone, Daniel Snyder from Seeking Alpha. Thank you for taking the time today.
We are diving into the world of gold (XAUUSD:CUR) and silver (XAGUSD:CUR) with none other than Don Durrett, who has been writing for Seeking Alpha for years and years, but today, we’re going to dive deeper into this because there’s so much going on between weakening macroeconomic data, central banks buying gold, the ETFs being leveraged in that as well.
So, Don, I want to kick things off. First, welcome. Thank you for giving us the time today. I know your time is very valuable. You got quite the portfolio that must be doing extremely well right now this year specifically. Even the last few years. If we look at three year returns of gold and silver, which I just pulled up on Seeking Alpha, it’s doing really, really well.
How do you find these gold and silver stocks that you like to invest in? And then how do you value them?
Don Durrett: I’ll give more of an overview of what you’re looking for, if you will. In a bull market, you want elasticity.
Elasticity means that when the gold and silver prices go up, your miners go up. You want them highly elastic. Gold goes up $100. You want your stock to go up more – in a percentage wise, more than that.
You want your stocks to participate in a big way. So, in that regard, the stocks that are going to participate the most are the producers. The reason why is because the producers are going to benefit in a variety of ways.
The first way is, as the pricing goes up, their free cash flow will go higher, and as the free cash flow goes higher, their stock will go up. And then as their free cash flow goes up, their balance sheet will improve. As their balance sheet improves, their multiple will improve.
So, let’s say a company has, I don’t use P/Es. I use free cash flow multiples. So, let’s say that we have a free cash flow of five. So that would mean let’s say the free cash flow is a $100 million. That means the market cap would be times five of that, would be $500 million.
Now, if that multiple doubles to 10, they go to a $1 billion valuation and nothing else happened. The only thing that pushed it up was sentiment. People wanted to own the stock.
You hear about the P/E multiples expansion. Right? So, you get that. So, producers are going to benefit from improve – as the price goes up, better free cash flow, better balance sheet.
Then the other way that they can benefit, as their balance sheet improves and they have all that cash in their balance sheet, they can use that to drill existing projects, buy new projects, build new mines. So they have all of these levers, if you will, to grow the company. So producers have huge elasticity. I think I’m going to make 80% of my returns on producers.
The second one that has huge elasticity is developers who investors think are going to benefit from future free cash flow. And when investors say, okay, this particular project, when it gets built, it’s going to be worth a fortune if gold prices maintain where they’re at. So you want quality developers. Those are the two groups.
As a matter of fact, I have on my website, I have a favorites list with 83 names. There’s only one exploration stock on there. 82 of them are either producers, near-term producers, or developers.
Only one exploration. And that one exploration company is unique. It’s unique in the fact that it’s an optionality play where insiders own 50% of the stocks and they’re not selling. They’re waiting for a big return. So, it’s unique. Optionality plays. So those are the three groups you want to look for.
Now, I’m going to show you how to analyze them. I’m going to share my screen, and I’m going to show you how to analyze these stocks. So the first thing we’re going to start with is producers.
What I do is, I use rules. And my rules are, they got to pass this checklist. The first thing you’re going to do is, you’re going to look at the properties, and you’re going to make sure that it basically passes, its kind of a quality.
So, you can rank these like them from 1 to 10, and you’re looking for problems. And so, the better the quality properties, the better. Then the next one is location issues, then financing issues, if any, management team, the valuation. So, this is basically your upside, and then the balance sheet. By the way, you can read my book and get a better understanding on how to analyze each data point here. My book’s a textbook on how to do this stuff.
Six is balance sheet. Seven is the margins and the cost. Eight is exploration, the pipeline. Nine is share structure, share dilution, and then 10 is the overall risk reward.
So, you’re trying to find one that basically has everything, has these 10. Chapter 10 of my book goes over this stuff. And if you can find a producer that basically checks all these boxes, you’ve identified an edge. You have an edge. Only thing that you really need is the gold price to go higher.
And what we’re trying to do here is, we’re trying to get an edge or trying to find really high quality potential stocks. You’re not trying to pick winners. You’re trying to pick potential winners. People always say, tell me the best five. You don’t know which one’s going to be the best.
I always tell this story about this one stock that I bought. I had no idea. You have no idea what they’re going to do, who’s going to buy them, what projects they’re going to acquire, which one they’re going to discover? Your big winners are always going to be surprises. So, don’t try to pick winners. Just try to get quality potential winners. So that’s producers.
Now we do developers. Strong project, and this is similar to the properties, but you’re looking for a specific project here on a developer, just one strong project. And then high upside potential, you want it to be at least a 10 bagger. You want to have room for error because these will – these will disappoint you.
You don’t want a developer that prints as a five bagger. That’s just not enough juice. You want you want some significant juice because things can go wrong, and they usually do. And on the high upside, I’m an unusual investor in that. I project out into the future. Currently, I use $5,000 gold and $100 silver. And I actually think those are conservative right now. I think they both need to be pushed up a little bit.
Good location. Location is very important. Strong management team. Well, all six are important. You need all six. Strong management team, they need to have experience, a good team, a good board, a path to production.
This is usually what’s missing. You want a company that has a really strong plan and they’re telling you exactly what they’re going to do. I get really comfortable when I see a strong management team, well, when I get all six. One thing doesn’t work, you need all six. But when they give you a really strong path to production, that gets me excited.
And then you got to have strong insiders. Sometimes I’ll gamble. If they don’t have all six, you’re gambling. And so once in a while, I will, I’ll gamble on one, but if they don’t have strong insiders, the chances are they’re going to get acquired or they’re going to sell, which is the same thing.
Now, the next one is the exploration, and this is the one where people are making a big mistake today. Remember I said earlier that you need elasticity? Exploration stocks do not have elasticity.
If you have an explorer that makes a discovery, nobody cares about the gold price or the silver price. What they care about is the next drill hole. And so, and that’s why people love them because they’re not elastic.
And so exploration stocks, they always work. They work in a bear market. They work in a bull market. But in a bull market, you have better risk reward in producers and the developers. You don’t need to mess around with explorers. But if you use, you can use my rules, my two rules for exploration at any time. Because if you use these rules, you’re basically going to get an edge, and that’s what you want as an investor.
The first one, there’s two rules. Rule number one is, optionality plays, and this is where you only want to buy explorers if it falls in one of these two rules. Rule number one is, if you can find an exploration stock that has gold or silver in the ground that’s highly undervalued, and it it’s a significant amount.
You don’t really want to do an optionality play on 1 million ounce gold deposit, but 1.5 million and above, it can work. So, let’s say you have one that’s 1.5 million ounces. Now, if it was at a $100 an ounce, it’d be valued at a $150, but if it had $10 an ounce, it’d be that valued at 15 million.
So, if you find one at 15 million or less, that would be a good optionality play. And there’s several of them today. I’ve done videos on the optionality plays that I like. Thing that’s nice about optionality plays is, like, it’s like free money. Because eventually, that gold or silver in the ground is going to get valued higher.
Good example is like Banyan. Banyan Gold (OTCQB:BYAGF) was valued at $8 an ounce, like, I don’t know, a month or two ago. Today, it’s valued at $32. So, if you would have bought it at $8, there’s like no way you’re going to lose money. It’s just a matter of how much money you’re going to make. So, a lot of these optionality plays is like printing money.
Rule number two, and I’ll be done here is, is the Lassonde Curve. And what the Lassonde Curve tried to teach people and everybody ignores it, is that the best time to buy an exploration play is at the very beginning of the discovery. So, that’s early in the Lassonde Curve.
The Lassonde Curve basically is the share price. And so the share price initially is very low, so they haven’t made a discovery. And then they make an initial discovery. That’s when you buy it, and it’s early in the Lassonde Curve.
And then you just follow it up the Lassonde Curve. The way to the Lassonde Curve is like a mountain. You climb up to the mountain and then you go down. You want to sell when you get to the top of the mountain or close to the top of the mountain. And the only time you want to buy is, you’re early on Lassonde Curve and you have an excellent drill hole. This is the one thing people miss.
So, if a company makes a discovery of anything like gram meter over 200 and it’s early in the Lassonde Curve you can chase that one or silver more than 2,000. And finally with a stellar hole those are the ones you really want to jump or if it’s close to stellar.
And those are the stocks that have the inelasticity that works. I have one caveat. The gold silver price is really important. So, even if you follow these rules, we’re still betting on the gold silver price.
DS: You at one point had mentioned the importance of free cash flow, specifically for these companies. Would you mind diving into that a little bit and why it matters so much for the gold space and silver space as well?
DD: This is a cash business so you constantly have to reinvest. If you’re a producer, you have sustaining capital. If you’re not generating a profit, you’re in trouble because you have that sustaining capital to keep ongoing monthly sustaining, to keep your business running.
In other words, it doesn’t run for free, and so you have basically what are called margins. So your free cash flow is your margin. Now, until about, I don’t know, a year and a half ago, margins were not that high.
Now margins are very high for gold miners, and finally in August, they finally got high enough for the silver miners, but the silver miners have been struggling because their margins were so low, and they didn’t have enough free cash flow to basically make any money.
And so, not only do you have sustaining capital, but you also have to spend money on future exploration to replace your reserves. You have the cost of sustaining capital and the cost of exploration, and then you have the G&A, of course. So you need to have margins, and some companies have debt on their balance sheet, which they have to service. And so, it’s basically, it’s a highly cash business because you’re constantly having to spend money, if you will, to stay in business.
And so, the more free cash flow you have, the higher the margins you have, you can start cleaning up your balance sheet. So, for instance, if you look at all the majors today, there might be one like Lundin (OTCQX:LUGDF) that has no debt, but most of them have significant. Look at their debt, if you look at you’re looking at Newmont (NYSE:NEM) there. They have $6 billion in debt, and we need to get that balance sheet cleaned up.
So, if we look at long-term debt so long-term debt. Current long term debt, $1.9 billion and then long-term debt, $7.5 billion. Well, that was in 2024. So, it’s down. They have massive debt, massive.
And all the majors do, and the reason why is because we haven’t had high margins until recently. And so, it’s going to take them probably two years to clean up these balance sheets. And as they clean them up, their multiples will start expanding.
I actually think that Newmont’s multiple will go from a 10 to 25. So, you’re basically buying, Newmont today at less than half off if you buy it. My target price for Newmont is $300. I think it’s about – okay, it’s at $86. I said it was going to go to $300 when it was at $30. And people were like, no way. Newmont’s going to be a nine bagger? And I’m going, yeah. It is. And so, here we’re at $86. If you wait, well, next year will be at $150, and all you need is a one bagger to get to $300.
DS: …$300 by the year 2028?
DD: Yes. At $5,000 gold, it could happen in 2027. 2027 or 2028 is my target for $300 gold for Newmont.
DS: Interesting. We talked about Newmont here, but, what’s one of the undercovered ones that we could look into real quick? Whether it’s a gold miner, a silver miner…
DD: Well, I’ve said this publicly many times. So, we just got back from Beaver Creek, and, I’ll tell you my top three stocks at Beaver Creek, and let’s bring up a chart.
The first one was 1911 Gold (OTCPK:AUMBF). And people are really apprehensive of 1911 because the previous mine went bankrupt. It was San Gold, but what people don’t realize is that the only reason why San Gold went bankrupt is because the price of gold dropped.
That mine would still be in business today if gold would have been high. They didn’t have a cost problem per se. They had a gold price problem. And so, now your $3,800 gold, it’s not going to be that difficult for them to restart this mine. And I’ve always loved this story, and basically, so nobody want to touch it.
I mean, you look at that chart. Nobody wanted to touch it until recently because now this thought, this company will be back in production in 2027. And so next year, 2026 is all about prepping. I think Q1 in 2027 they will be back in production. It’s in Canada, which is beautiful. It’s very cheap. I mean, you look at the market cap. So, 200 million for a Canadian producer.
My target price for this one is $10. So that’s one. So they’re a near-term – not quite a near-term producer yet, but they’ll be a near-term producer in about six months. It’d be about a year out. I consider a near-term producer within one year, but they check all the boxes the way that – you remember I showed you my development checklist? These guys definitely check all the boxes.
The next one you can bring up is Talisker Resources (OTCQX:TSKFF). One thing I like is location. 1911 is in Manitoba. The next one is Talisker, and they’re in British Columbia, another Canadian play. They actually have a bigger mine than 1911. They’re going to be producing, they’re producing right now, I think, about 15,000 ounces, and they’re going to be producing 50,000 next year. And you can see this one was at $0.25, and now it’s up to a buck.
And it’s still – these stocks have come up, but they’re really, really cheap still, believe it or not. I mean, like I said, I got $10 target for 1911. It’s trading at $0.75. Same with Talisker. Talisker has the same potential upside as 1911. They’re actually a bigger mine than 1911. 1911 is about, I think, 1.5 million ounces, and this one’s more 2 million, 3 million.
They’re going to be mining 50,000 in 2026 and then 90,000 to a 100,000 in 2027, and then they’re going to build their own mill. So, the first two years, they’re going to be using toll milling, – then they’re going to build their own mill, and they’re probably going to grow to a 150,000 ounces.
Now, 1911 has strong insiders. Talisker has a bit of a red flag. They don’t have high insiders, so I think they could get taken out that which concerns me.
If I was a company like Artemis Gold (OTCPK:ARGTF), I’d be taking these guys out. Anybody that’s in the neighborhood. So, their insiders are a little bit weak there, at Talisker. So, that’s the risk there.
Now, the third company, as I was going to mention three, was Jaguar Mining (OTCQX:JAGGF). Jaguar Mining, let’s bring up its chart. It’s actually a very cheap producer. They have three mills at 2,000 tons each. So, it’s starting to trend up. And only one of them is being used, and the other one is – it’s only going half. So, out of the 6,000, only 1,000 tons is currently being used, and they’re going to fill up all 6,000 tons per day.
They’re going to go from 40,000 ounces to 150,000 to 200,000, probably, let’s say, 175,000 to 200,000 ounces a year. They have this huge growth ahead of them, plus that’s just on their existing mines. And the new CEO, who I really like, is very aggressive. He basically has a plan on how to basically fill up those mills, and trust me, this guy’s, he’ll pull it off.
So, those are the three mines, the three stocks that I walked away from Beaver Creek saying, I got to buy these ASAP.
DS: Jaguar here with 50% ownership as I know you were mentioning.
DD: Yeah. It’s absolutely beautiful. That’s all Eric Sprott. Eric Sprott owns half the company.
DS: So he’s getting his best interest. Thank you, Don, for providing these names. This is insightful for us.
DD: Sure.
DS: I wanted to see if we could go ahead and transition. There’s been a lot of questions coming into the chat, and I just want to take the duration of our time that we have left with you today.
There’s one big question that’s been coming up time and time again, that is, what is the difference between explorers and developers and producers or miners? Can you categorize those for the people watching?
DD: Well, I already did on a risk reward basis. I said the producers have the best, developers have the second best, and explorers, not so good in a bull market. You can avoid them except for those two rules.
You want to keep your developers in a very small little group. I have about 8% in my portfolio, and I feel like I have too much, but that 8% is mainly optionality plays, but I went over this a little bit. I talked a little bit about how producers, it’s all about margins, free cash flow, and it’s about how you grow the business.
We always, as a producer, I always want an aggressive management team. I want them to always be thinking about how do we grow production. It’s the growth companies where we make baggers, if you will. We don’t want companies to just sit there and mine 100,000 ounces.
Like, Jaguar Mining, I mean, they were content to mine 60,000, 70,000 ounces just year-after-year, just plod along. Now, they have a new CEO, and he goes, oh, I’m not content at all with that. I’m off to the races here, people. And all it took was a new management team.
One thing I found in this business that good management teams are actually pretty rare. I mean, even the good companies do not have good management teams, believe it or not. I mean, I couldn’t get people to buy, I created a group called the Mormons, which were the eight prettiest girls in the silver plays. They’re the Mormons because you normally don’t marry a stock, but in this instance, you want to marry all eight of them. They’re called the Mormons. Just marry them all and don’t divorce them.
And I couldn’t get people to buy Hecla (NYSE:HL) and Coeur (NYSE:CDE) down at $2. They’re like, I’m not buying that piece of crap, it never performs. And I was like, you’re looking at this thing wrong.
Hecla and Coeur, yeah, their management team, they’ve never really focused on shareholders, but they do really well in bull markets. Just go back to 2009 to 2011, and then go back earlier. Hecla and Coeur, people are like, I’m not touching them, I’m not touching that. But the guys that got in at $2 now bring the Coeur chart up. Now, Coeur is at, I think, $18. So, like, it’s like an eight bagger since I mentioned it.
You can see when I created it in 2023, look at how low. $2? And now it’s $18. So, how’s that for a return? Guess what my target is on this? $70. My target, my exit price on Coeur is $70. So, if you would have bought it at $2, it would have been a 34 bagger, I think. So, a 30 bagger for Coeur, a high quality silver producer, believe it or not, if we get to $100 silver.
But people wouldn’t buy Hecla and Coeur. I’m not touching that because of management. They’re like, I’m not going to do it. I can mention a few other companies that people won’t touch because of management. So you’re always trying to find that elite management team, that quality management team, and I really like them. I call these companies sharks and I also call them buy and build companies.
And I want these companies as soon as they build the mine, they go buy and build another one. That’s what I really want. G Mining (OTCPK:GMINF) is one like that, Orla Mining (NYSE:ORLA), Perseus (OTCPK:PMNXF). I mean, these are companies, SSR Mining (SSRM). They don’t mess around. I mean, they just buy and build, buy and build, or buy an existing mine that it’s already in operation. So, we want to find these aggressive companies.
The thing that really absolutely blows my mind is, we have not seen a single, this is unbelievable, we have not seen a single silver development story get taken out.
Now, we’ve seen three producers. We have (NYSE:MAG) got taken out. We got Gatos taken out. We got SilverCrest taken out because they were all accretive deals, but nobody will overpay. Like, nobody will overpay. Nobody will pay for these development stories. There are 15 quality silver development stories out there that have been out there for five years and nobody’s touched them.
When is it going to be, when are they going to start acquiring these development stories? I mean, these stories like AbraSilver (OTCQX:ABBRF), GoGold (OTCQX:GLGDF), Vizsla (NYSE:VZLA). There’s a lot of them. Minaurum (OTCQX:MMRGF), Silver One (OTCQX:SLVRF).
There’s tons of these silver development plays out there. Nobody’s buying them. They’re like, no. The reason why, I’m sure there’s been offers, but nobody and even the big, Corani, Bear Creek, and even some of these exploration companies, nobody’s going after them, and they’re cheap.
I mean, if you look at, like, Southern Silver (OTCQX:SSVFF) valued at $0.35 an ounce in the ground, and nobody’s buying it. It’s like nobody believes in the silver price going higher. Now, I do think that once we get above $50 silver, everybody’s going to, then they’re going to go, oh, these are accretive. Okay. Now we can buy them. Now we can buy them, but nobody has any vision.
When Avino (NYSE:ASM) was at $0.40, $0.40, I basically said, this is the best buy on the planet. And then bring up Avino, I was telling everybody when it was at $0.40, I said buy this stock to the bottom. That’s my favorite way to do it, buy it to the bottom.
And I always nail these bottoms because they’re so obvious to me. Once the stock starts bouncing on the bottom, you know it can’t get any lower. This is when you get a 10 bagger. Coeur’s been a nine bagger, and these stocks are still cheap.
I mean, Avino – and the thing that blew my mind was nobody would buy Avino. None of the Mormons, they’re like, well, I don’t want it. You have no idea what you’re passing up here. And the thing that’s crazy is Avino doesn’t have any insiders. 80% of the company is owned by retail. 80. So, they’re sitting duck.
If Hecla went in there and said, okay, we want to do a 30% premium. The retail crowd would say, sure. The retail crowd would buy it in a heartbeat. There you go. 78% retail. There’s no way in heck they could fend off Hecla, if Hecla wanted to buy them or Coeur wanted to buy them. First Majestic (NYSE:AG) wanted to buy them, but they don’t care. They’re like, oh, it’s not accretive enough.
It’s amazing to me how conservative this sector is. Now, if I was on one of these boards when Avino was at $0.40, I’d be pointing my finger going, go buy that company right now. It’s like, they’re sitting on 350 million ounces of silver equivalent. 350 million ounces. That’s why they’re still cheap. And it’s like, you could have bought that thing for two, it’s unbelievable. $0.20 an ounce on the ground. $0.20 you could have bought Avino if you wanted to back in the day when it was cheap, but nobody would touch it. They’re like, no. It’s not accretive.
Now, okay. So, you wanted me to tell the difference. So, development stories, I went over producers. Development stories, those are highly risky, and they’ll break your heart over and over again. The reason why they’re going to break your heart is because they have high upside.
You can find these development stories that I mean, there’s a bunch of them that I own, and a bunch of them are going to break my heart. And the reason why they break your heart and they have high risk is a lot of things can go wrong. You have cost overruns. You have ramp up problems. You have grade issues. You have dilution issues. Management doesn’t perform.
So many things can go wrong with these developers. I always say that, but it’s an 80/20 rule. Only about 20% of them are going to be your 10 baggers. The other 80 are going to disappoint you. Maybe 30% break even and 50% break your heart.
But if you can find enough of these – I call them home runs, those are 10 plus baggers, then it works. But, again, the best risk reward is going to be your producers.
DS: Thank you so much, Don. I just want to mention real quick because I know we’re getting towards the end here. If you like everything you’ve heard today, you like, I mean, the explanation Don has provided today has been next level to me, especially some of these names I’ve never even heard of before. I would highly encourage you. He does run Gold and Silver Mining Ideas here on Seeking Alpha.
You do have a promotion going on as well where it’s $30 for that first month. You get access to all of his analysis articles on Seeking Alpha. You have the active live chat, so you can actually ask him more questions and engage with his community there. Have a portfolio of exclusive ideas as well, but, also, I want to encourage you to follow him on Seeking Alpha if you haven’t already. This is one of the greatest ways to just get these updates that he’s been putting out. I mean, that’s the easiest way just to stay in Don’s circle here.
Don, wanted to go back because there was a question about when we talked at the beginning that you’re going to sell in 2028 or towards the end of the decade.
As an investor yourself, when you sell, are you going to look to put that money to work elsewhere, or is that just like you’re riding off into the sunset at that point?
DD: Yeah. I’m going into retirement. So, at that point, it’s just going to be about protecting my capital. So, yeah, it’s going to be difficult to figure out where to move that money, I’ll have to figure it out.
DS: As we’ve been talking about today, gold’s on a tear, right? Increased volatility within this sector. Gold historically has had moments of volatility going both ways, for various reasons.
Do you feel the conviction right now, that this is a very sustainable rally to the upside or would you be expecting a cool down pullback anytime within the next few months potentially?
DD: If you ask Grok, give me a list of the corrections in gold from 2001 to 2011. Every single year, there was a correction of at least 10% in gold. Gold was very volatile from 2001 to 2011, but all it did was every time it went down, it would turn around and went back up. You always had 5% to 10% corrections in gold from 2000 to 2011.
So, up and down, up and down. You’d have to break that up. It looks like it went straight up. Doesn’t look like there’s any significant corrections, which is true, but the mining stocks are going to be volatile here going forward.
Now, my point was this, is that 2001 to 2011 was a bull market in gold, and that’s where we’re in now, but that didn’t mean you didn’t have corrections in mining stocks.
We had significant corrections every year. And so, yeah, get ready for it, but if you’re in a bull market, it’s just a matter of how long you have to wait it out before you’re back up again.
I expect gold to correct somewhere between 8% and 12% when the stock market finally crashes, if you will, because I think the stock market’s going to crash because of what I said in my opening comments. So when the stock market crashes, we can expect gold to get, I think, 8% to 12%.
So that means you can expect your portfolio to go down somewhere between 12% and 20%. That’s my expectation. And it’s going to go down in the teens is my expectation.
If your portfolio go down in the teens, it’s really a nothing burger because if we’re in a bull market, we’re just going to, that correction will only last about four to six weeks. Four to eight weeks is my expectation, and we’ll be back up, like, so the HUI is a little over 600 today. So, let’s say it goes all the way back down to 500 or even 480 or even 450, which seems like, oh my God.
But let’s say the worst case, it goes down back to 450. It might be back at 550 within a month, and so it was a nothing burger. So that’s my expectation, because I lived through that last bull market. I rode all of those dips, and it was like, just wait. It’ll go back up. We’re in a bull market.
I always say don’t try to trade this. Just get on the train and buy the dips, and just get ready to withstand any significant drops. Now the one thing I’ve done is, I know that a dip’s coming because I just know we’re going to get one. It’s going to happen.
So what I’ve done is, I’ve created a list of five or six stocks of that I already own, but they’re under allocated. They’re under allocated. I’d like to add a little more to them. So, I’m going to add shares in those five or six stocks when the dip comes. And I’ve actually already allocated the funds.
It’s like the money is just sitting there waiting for the dip to happen thing. And you should do the same thing, but your list might include stocks you don’t own. And so, basically get ready to buy the dip because the dip is coming.
I don’t think we’ll get a 25% correction in our portfolio, but high teens and maybe low 20s is possible. I definitely expect teens. If we only get a 15% correction, well, that is teens, but 12. If we only get a 12% correction, we’ll be very lucky. That’ll be a nothing burger totally, but I don’t think we’ll get that lucky. Expect high teens.
DS: Alright, Don. Let’s go ahead and wrap it up there. Just want to remind everybody too. I mean, corrections of 10% are pretty normal in bull market runs as well. So, just because it goes down 10% doesn’t mean the bull market’s over.
Don, thank you so much for your time and your insights today. This has been highly, highly enlightening for myself and tons of people that have been saying thank you in the chat for you today. If you’ve been watching the webinar replay, we hope you found something valuable here as well.
Make sure you follow Don. Make sure you go check him out, do all the things, check out his book as well. But Don, again, thank you so much. Everyone, thank you for taking the time to join us today. Have a great rest of the week.
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