Hi Monny, When I have invested in more speculative companies,...

Hi Monny, When I have invested in more speculative companies, I’ve found a large % of the gain is made pre-construction. Time and associated risks over the next phase leads to interest waning or capital raising being made. Any delays/hiccups exacebates this.

I may still retain a holding as i’ve done here. However, I’m more than likely to dispose of the entire holding just prior to production. There are always issues hitting nameplate so I find it presents another opportunity to buy in once they look to have ironed out any production issues. ORE was a good example of this. My philosophy on industrial companies is different as it’s a little easier to track earnings and I tend to let these companies run.

I may not always be correct, however, I think it’s important that all investors have their own DOCUMENTED strategy (that they should always refer to) and stick to it. For speculative investments I will also sell if the share price drops 15-20% from my purchase price. Sometimes I get it wrong and it bounces back. However, what starts as a 20% fall can lead to a 50%-80% fall which can have a significant impact on the portfolio and also leads to opportunity cost as investors tend to hold for years and years waiting to claw back their losses.
Again it’s just the way I manage my investments. Not perfect, but I would highly recommend all investors have their own documented strategy put in place. It will be the best investment decision made.