The Panic-Proof Portfolio (Stockchase Research)Agnico-Eagle MinesAEM.TOTOP PICKJul 18, 2023

Parabolic increase in January, things got extended. He reduced then. Gold bull markets advance in stages, with corrections lasting ~3-5 months. We're now 3-4 months into that. He's been rebuilding. Next leg should be a strong leg higher.

Long-term investors should just buy and hold.

A dividend pick. Dividend are one of the best, easiest ways to hedge against inflation. This is a dividend grower, increasing each year by nearly 202% annually over the past 5 years. The total return over 3 years is 230%.

He recently added, but still underweight gold.

She doesn't like gold now. She bought this is in the $60-70s. Its mines are in low-risk areas, like Canada and the US. Gold used to be a safe haven, but this has recently reversed with gold now trading as a risk-on stock. The space got crowded and became speculative.  Tread carefully. She is not adding her holding. AEM is the best gold stock,.

Revenues are 99% gold, 1% silver. Its 10 mines reduce single-mine concentration risk. Jurisdictions have negligible political risk. Management has well-deserved reputation of credibility.

Met production guidance in 9 of last 10 years. Beat street earnings estimates in 29 of last 30 quarters. Loves Finnish acquisition of last week. Great entry point. Yield is 0.92%.

Doesn't like miners as an investment -- not a good enough business that delivers high enough ROIC. ABX and AEM are the top 2 gold companies in Canada. He'd lean more toward AEM.

Only reason to buy is if you have a firm belief that gold prices are going a lot higher, but it's impossible to know.

Really likes it. OK valuation. Safe jurisdictions give it lots of tailwinds. Gold itself has had a big run, and looks to have broken that. Investors are likely taking profits from the miners. Hold, then add if gold sees serious momentum and breaks to new highs.

(Note the shortish timeframe.)  When a stock gets to 10% of a portfolio, they peel it back. Still first- or second-largest holding in portfolios. Only knock on it today is valuation, but that's the quality speaking. Quality is how you make $$ in the long run.

Still a great place to be.

Good long-term hold. Over the short term, vulnerable to ups and downs in gold price. It's become the "gold star" gold company to own. Management shines, good acquisitions.

In general, keep your position in gold under 5%.

He just bought this. Is bullish mining now. Superior margins, low costs and low risk jurisdictions.

Has come off with the price of gold. This name, along with AGI, is the best-run gold company in Canada, if not in the world. Both continually replace mines with fresh, high-quality reserves. Pullback is a chance to buy.

Has doubled over the last 12 months, so consider taking some off. Very well run. In good jurisdictions. Despite the run, his firm is a big fan of gold -- more to go because of USD weakness.

With profits, consider going into bullion itself (such as CGL).