How to Invest in A Cyclic Market

We were in a cyclical industry.

All commodities go through boom and bust periods of varying lengths and intensities.

But in the metals universe, it's not all at the same time.

One mineral or industry can be very much in vogue while another languishes in purgatory.

So the starting point from a top down has to be understanding where you are in a given cycle and what the supply demand fundamentals are.

And then once you've identified the industries and themes you think are positioned for success and investable you have to have both then you need to select your investments.

You know, it's worth saying at the outset that I have a bias towards quality and I have a bias towards value.

There's a time and a place for leverage at different stages in the market for turnaround stories, but I'm always going to be most comfortable when I feel like we've backed, you know, the very best management teams, the best discoveries, you know, the sorts of projects that are so good that other companies will ultimately feel like they have to own this and be willing to pay a premium for it.

Um and where those things come together, you know, you look for well-run businesses which, you know, have ethical management with relevant experience, companies with clean balance sheets, strong share structures, holding high quality assets,