|Rick Rule On Value Investing: “Price Is What You Pay, Value is What You Get”
I had the chance to sit down once again with Rick Rule, CEO of Sprott U.S. Holdings. It was an interesting discussion, as I was able to ask Mr. Rule about a book that in his words, “Absolutely changed my life.”
In his early years Mr. Rule had the good sense (and fortune) to meet with a legendary value investor, who handed him a copy of “The Intelligent Investor”, written by Ben Graham.
“I opened the book … [and after 10 pages] … my life was ‘over’,” Mr. Rule admitted. “I didn’t put the book down, [and] read it in one sitting.”
Discussing a few basics from Graham’s work, beginning with ‘price’ and ‘value’, Mr. Rule noted that “Price is what you pay, value is what you get.”
“Making money in investment or speculation,” Mr. Rule explained, “involves exploiting the arbitrage between price and value – buying things at a price … substantially below their value.”
Mr. Rule further discussed the difference between ‘investment’ and ‘speculation’, as well as sharing anecdotes of how value investing can be applied to everyday life, not just financial markets.
I’d like to invite you for a unique and rare opportunity to join me and a renowned roster of financial experts on The Money, Metals, and Mining Cruise sailing May 28 – June 7, 2018. Together, we’ll sail for 10 incredible days through the Mediterranean from Marseille to London. While at sea, I’ll share what lies ahead in the markets and what opportunities are available to build a more profitable portfolio. I’ll be on hand to give you answers and share a few tips to give you a fresh financial perspective.
— Rick Rule
Tekoa Da Silva joined Sprott Global Resource Investments Ltd. in February 2014. He currently serves Sprott Global and Sprott Asset Management USA as an Investment Executive.