Where the Magic Happens - The Importance of Attending Investment Conferences

I was recently asked by friend and son of the man who owns one of the top investment conference companies in Canada if I would run an article published by him.

I quickly scanned the article and was about to tell him no.  After all, he didn't attack governments or central banks at all!

But I agree very much with what he is saying.  And he is making an important point to investors that I do wish to pass along.  The point is this: If you are a serious investor in the sectors of the stock market that we cover (precious metals, commodities, agriculture, energy) you should make a point of attending a minimum of one or two conferences per year.

Why?  It's just like anything.  If you are going to do it seriously, you should know the names and faces of the people in which you are entrusting your hard earned assets.  But, unless you live in Vancouver or Toronto, chances are that the great majority of the mining companies in which we invest are not based out of your town.

As well, even if you live in these areas, they just cannot make time to meet individually with each and every investor - especially if they are small investors.

However, at these conventions you can meet face to face with anyone from the IR person, to VPs, right up to the CEO him/herself.

Here is an insight for you about how I invest.  I find two or three of the top analysts that I have followed for years and implicitly trust because I know them and have seen their work over years and can see their integrity show through and I follow their advice.

Why?  Because I am not a mining analyst.  It takes a very specific skillset and a lot of time spenteducating yourself on these markets.  So, who do I listen to?  #1 is Ed Bugos.  For those who don't know his track record, it is really impressive.  He is one of the few gold mining analysts on planet earth who recommended gold stocks from 2000-2006 and then during late 2006 and into 2007 he was largely out of the market.  At the same time, just prior to the massive crash of 2008 he was quite heavily short the overall stock market.  Then, as soon as the crash was near completion he began piling into and recommending gold stocks again, at historic lows.

Here is the chart of his performance scoped against the TSX-V index, which is a good index for the mining stocks:

But, of course, anyone would be silly to put all their eggs in one basket - so I also listen to a few other analysts who I consider to be at the leading edge.

One is Steven Saville of The Speculative Investor.  Him and Ed don't differ on much but when they do, I listen.

I also think that Louis James of Casey Research is an excellent mining analyst.  He is more "boots on the ground" than any other independent analyst I know.  So when Louis says he has been there, again, I listen.

And when it comes to the microcaps, there is no one better than Danny Deadlock of Microcap.com.

There are, of course, dozens more who I think are incredibly smart and who I trust but those are my top 3.

My point is, however, that while I follow Ed, Steve and Danny like Christians follow Jesus, there is one last important thing I do:  I meet with the companies I invest in.

I tell many people I have one real skill that has served me well my whole life.  That skill: Within minutes of meeting a person I can tell 95% of what they are about.  And so, while my favorite analysts may love the stock, the story and even the people... I want to meet the people and judge that for myself.  Because this game is largely about the people.  A very small percent of people in this business are successful.  You can do very well just finding them and following them.

And for that reason I suggest if you are a serious investor that you attend these investment conferences when possible.

I am writing to you from the airport in Edmonton en route to the Saskatchewan Investment Conference where I'll be speaking on Saturday morning.  From there I leave direct on Sunday to New York City where I'll be speaking at the Hard Assets Conference on Monday morning at 7:45am.

Come and meet me in person.  Follow me on Twitter and I always announce where I am and always invite fellow dollar vigilantes to join.

And now, without further adeu, here is an article from Jeremy Martin on the importance of attending investment conferences and how to make the most out of them:

WHERE THE MAGIC HAPPENS by Jeremy Martin

Five tips for building your personal brand at an Investment Conference

Investment conferences can be intimidating places to be for a newcomer unfamiliar with them. Sometimes this is because of sheer size. Our Vancouver Resource Investment show had over 7000 attendees in January. PDAC in Toronto had some 25,000 last month.

While at times these numbers can be overwhelming, there's still no better way to meet industry players, get your face out there, and generate opportunities for yourself and your company.

So, before you decide to stay at home and attempt Tweeting your way to success, here are a few lessons I've learned growing up in the industry. 

Ask questions

Questions demonstrate intelligence, and they get to the truth. Andrew Statham, one of the rising stars in the brokerage industry, is a stand out because he's always got his list of companies to visit and questions to ask. Everyone knows he means business. A trick I've learned is to ask speakers and exhibitors questions they want to answer ((ie to talk about a stock they love - or how to buy their products). A few more friends never hurt!

Stay humble

While we all need to communicate our stories and our opportunity criteria, we have to be careful not be jerks about it. Be humble, respect people's intelligence, never get in over your head without disclosing that you don't know what you're talking about, and show genuine interest in others. For young people like me this is especially important. Jokes at your own expense are always good too. 

Spill wine

As important as the business events of the day are, the real relationships develop after hours. Last February at a conference in Phoenix I had an opportunity to have drinks with Jeff Berwick, a speaker and editor of the excellent Dollar Vigilante newsletter. Jeff is one of the most dangerous men in finance and I found out why that night. He ended up in handcuffs and I was right there with him, so we're friends for life now. If you don't drink, that's no problem, just don't let it stop the fun. After all, we're here for a good time, not a long time.

Follow up

Glen Mullen, the colorful mine finder and co-owner of the Quebec Hockey League's Val-d'Or Foreuers recently told me: "Something always comes out of a conference, whether it's a new project, employee, exposure or financing opportunity, but you never know what it's going to be. So when I get home I follow up immediately. Every time. And it's never disappointed." I  keep track of the people I meet in a database (Highrise is great for this). A spreadsheet will do just as well. It doesn't matter how you get the job done - as long as it get's done.

Keep coming

It never ceases to amaze me how somebody can show up to a conference without knowing anybody, and with a little personality be the star of the show by the next conference. The investment community is actually really friendly. Honestly, after a few of these things you'll be high-fiving everybody. 

I look forward to seeing you at an upcoming conference. Count me in for a high-five anytime. 

Jeremy Martin is a Director of Business Development at Cambridge House, North America's largest resource investment conference company. Find him at the Saskatchewan Investment Conference May 7, 2011, and in Vancouver at the World Resource Investment Conference June 5 - 6, 2011. You can follow him on Twitter here.

Comments

[A Sask Farmer]

You've got a big following here in Saskatchewan Jeff! Me and all my friends have been big fans for a long time! We'll be coming to the show and are looking forward to your speech! Keep up the great work!