tailieunhanh - LEARNING FROM A LEGEND: HOW WARREN MADE HIS BILLIONS

I was looking at Inco – a nickel-mining company – about a year ago. It had outstanding numbers, including a low price-to-earnings ratio (P/E), big margins, and a good cash flow. So – after doing my research into the company’s growth strategy and management team – I recommended it to my subscribers. It’s now up over 80%. What did I know that other investors missed? It’s pretty simple. I knew that mining companies are sometimes discounted because their industry is so cyclical. What’s more, the price of the commodities they extract can also be volatile. I figured if this company could somehow remove the question marks raised by those two. | 4 À J LEARNING FROM A LEGEND HOW WARREN X MADE HIS BILLIONS CIO 570 no tr no u no u no tr no u non 575 3 notr R2OOOG . 190 0 90 2 5ĨỘ Close Dec notr 700 0 Close 22 15 Jan no tr no tr iCW 5 5 ssyùk 245 755 Or 215 3 j y 90 5 0 7 -_ .0ữ3í 6k 050 47 1 . ou 09tr ĩ I t4MG d p7to icos 5 nqtT sn ỹìw 3 0 B0 0 5 nox C PM ắ no u A . k 0 fS c5 no u no y M-SytfO boseOXg n w . 2. ĨO4 tu 50 AttXun n Intun C45 3S3 or Invf nSv I rc f . p77T-TuK ÓỊ0 30 cirr 217 1 25 410 pl 12 378 0 notr . 422i npu 1 Ik 0 p 13 0 3 s ỈÍ BY ANDREW GORDON INTRODUCTION I was looking at Inco - a nickel-mining company - about a year ago. It had outstanding numbers including a low price-to-earnings ratio P E big margins and a good cash flow. So - after doing my research into the company s growth strategy and management team - I recommended it to my subscribers. It s now up over 80 . What did I know that other investors missed It s pretty simple. I knew that mining companies are sometimes discounted because their industry is so cyclical. What s more the price of the commodities they extract can also be volatile. I figured if this company could somehow remove the question marks raised by those two issues its discounted price would have to rise. When I found out that nickel was in serious short supply a situation that wasn t going away anytime soon I realized that Inco was in a strong growth market that would also prop up nickel prices into the foreseeable future. Then I looked very carefully at the company s balance and income sheets its recent financial reports production costs capital expenditures and current and planned mine development activity. I liked what I saw. I also concluded that its management team was strong . and that was all I needed to know. I concluded it was only a matter of time before this company s stock would rise - and if it didn t happen right away it would happen sooner or later. As it happened Inco went up later rather than sooner . .which was no .