Saturday, May 3, 2008


The longer I do this the more apparent it becomes to me that patience is one of the keys to success in the field of investing. Warren Buffett likens it to a batter standing at the plate waiting for that perfect pitch. The thing is he can take as many strikes as he wants. There are no strike outs in investing just because you aren't ready to swing.

The patience to wait for that perfect pitch is often the difference between getting stopped out or taking a severe drawdown and hitting a home run. The patience to hold on to your position once you have it is usually the difference between getting thrown out at second base and winning the seris. All great investors that I know of exhibt this trait in spades.

It's tough for precious metals investors to sit on their hands and wait for that sweet pitch right down the middle of the plate. After what the metals have just done it's hard to sit still and wait for the correction to finish. The fear of missing another big move can conjure up all kinds of bottoming scenarios. Luckily for us we have a pretty darn good indicator to tell us when to reenter in the COT reports. What better time to start buying than when the big money is also buying.

So for now I know it's tough but the best course of action is to sit still or look some place else where the pitcher is throwing that slow ball over the plate. Right now in the gold sector we're trying to face down Nolan Ryan.