The Next Big Thing for Investors: Get Involved in Commodities with Simon Popple

damottaleonardweb
Feb 15, 2022
3 min read

Take a look into the commodities sector of stock investing with long-term investor and professional in strategy, Simon Popple, on this new episode of The Prosperity Perspective Podcast. Simon takes a seat in the guest chair to share why you shouldn't overlook investing in the smaller exchange sectors such as Canada and Australia (They may even have a benefit that larger exchanges do not!) and why you should look for places that you believe in first. Gain insight alongside our host, Liam Leonard, into Simon's bridge system and how he conducts his research, urging you above all to "Always have a strategy!"

3 Key Takeaways:

Why commodities are the next big thing for investors
Why you need to be comfortable with selling when it's time
Why your investments need to be more diversified in today's world

Show Notes:

[0:20] Simon Introduces himself

Investing in companies and property in the city
Deciding he could find the next big thing
- Entering the commodities niche
- Deciding to share the wealth of his knowledge with others

[1:10] What made Simon decide commodities was the next big thing

Hearing "never love anything that can't love you back"
People should be thinking about commodities more
- Simon defines a PGM
- "That's what I like about the sector. You're investing in something tangible, and you've got to be diversified." -Simon Popple

[3:15] How Simon evaluated where to put his additional income

He began with property
- "It's important to look at areas where you think there's a huge future." -Simon Popple
- Property is driven by affordability
Commodities were a good diversification and balance against property

[15:20] How investing in gold and silver commodities differs from Simon's strategy

His financial advisor asked him to advise them
- Looking at the Golden Sax Commodity point of view
- "Try to find an asset class that's not in a bubble where you can really believe in it." -Simon Popple
Commodities also allow for investment in other countries

[18:20] What makes what Simoon does different

You can't be an expert in everything, but you can tell people what you're doing
- People follow Simon's bridge system explaining the rationale of what he does

[19:30] Are his investment commodities all listed on a major exchange?

They're all traded on the CSX, TSXV, or ASX stock exchange
- They're all liquid to buy and sell

[10:37] Are these companies dividend-producing?

It varies
- Large companies typically provide dividend
- Simon's ore example of why he likes these companies
- What level of risk do you want?

[12:27] Why does Simon prefer the Canadian and Australian stock exchange?

He uses a broker that has access to all the shares on those exchanges
"You do find that because they're smaller exchanges, that some of the larger platforms don't provide access to all of the ideas I come up with." -Simon Popple

[13:19] Why it's exciting to have companies in the left field

They're watched less closely

[14:00] The landscape of commodities and Canada/Australia

Both are countries with huge natural resources
- It made sense to be listed on his exchange
- As a company gets larger, they get a listing somewhere where they want to raise money

[15:00] The most exciting thing Simon is investing in today

Lithium is red hot right now!
- One in particular has done nothing since he told people about it, but it fascinates him
- His example of a client who didn't care about the lithium price
- His second example
Why is this share taking off?

[17:27] What strategies does he employ to the market?

"It's impossible to time the market. It's more a case of time in the market." -Simon Popple
It's a volatile market; don't be too greedy
- If you're somewhat formulaic and disciplined about selling a few companies, then you can buy at lower risk
Aim to de-risk the portfolio

[20:09] to [20:12] Bit of an Awkward pause - cut?

[20:12] Liam talks about the psychology of investing

His recent read about how we overvalue what we own and undervalue what we don't have
You need to work out what you are
- People find out about themselves

[21:50] The one piece of advice Simon gives to those looking to start in Commodities

"Have a strategy and stick to it, whatever happens!" -Simon Popple
Don't think you're smart when you're lucky
At some point, the fun stops
- When it's time to sell, sell!

About Simon Popple:

Simon Popple is a commodities expert of over 10 years. Now, Simon seeks to share his investment knowledge by providing weekly research on commodity companies for those over their 50's who want to diversify their portfolio and retire earlier.

Simon has also written newsletters and articles for Moneyweek and regularly appears on IG Index for his expertise.