Rick Rule's 6 Stock Picking Strategies

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In a recent interview with Resource Insider's Jamie Keech, legendary resource speculator Rick Rule shared his criteria of what it takes to be a top ranked company in his eyes.



Rick mentioned that only 7 companies have received the top-most rating in his 35 years of ranking stocks and that the last company he gave a top rating to was Ivanhoe Mines 4 years ago.

Below is the discerning criteria employed by the President and CEO of Sprott US Holdings:

1.       The company must be selling at half its present liquidation value

2.      The company must be adequately capitalised to survive for 2 years

3.      Belief that the stock can double over the ensuing 18-month period

4.      Belief that the company offers a 10-fold price escalation potential in a foreseeable commodity price environment over 5 years

5.      The company must have or have a reasonable prospect of developing a tier-1/world class asset

6.      The company must possess a top tier tried and tested management team that owns a lot of stock relative to their salaries

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In the wide-ranging interview, Rick and Jamie discussed gold as both an insurance policy as well as an investment.

You can watch the full interview as well Jamie's other videos of top mining professionals over at Resource Insider's YouTube Channel.

Do you know of any company in the market that meets (or comes close to meeting) Rick's stringent criteria? Share in the comments below.


ALL THE BEST


Disclaimer: I do not hold a position in any company mentioned. This article solely expresses my opinion. I have not received any compensation for this article.

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