Rick Rule On Value Investing: “Price Is What You Pay, Value is What You Get”

Rick Rule On Value Investing: “Price Is What You Pay, Value is What You Get”

By Tekoa Da Silva

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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.

To watch this highly recommended full interview, click here:


If you have any questions or comments regarding this article, please reply to this email or contact your Sprott representative at 800-477-7853.

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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.

So please join me for a very special gathering.

— Rick Rule

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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.

Sprott U.S. Media, Inc. is a wholly owned subsidiary of Sprott Inc., which is a public company listed on the Toronto Stock Exchange and operates through its wholly-owned direct and indirect subsidiaries: Sprott Asset Management LP, an adviser registered with the Ontario Securities Commission; Sprott Private Wealth LP, an investment dealer and member of the Investment Industry Regulatory Organization of Canada; Sprott Global Resource Investments Ltd., a US full service broker-dealer and member FINRA/SIPC; Sprott Asset Management USA Inc., an SEC Registered Investment Advisor; and Resource Capital Investment Corp., also an SEC Registered Investment Advisor. We refer to the above entities collectively as “Sprott”.

The information contained herein does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation.

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This report contains forward-looking statements which reflect the current expectations of management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, and similar expressions have been used to identify these forward-looking statements. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this document. These factors should be considered carefully and undue reliance should not be placed on these forward-looking statements. Although the forward-looking statements contained in this document are based upon what management currently believes to be reasonable assumptions, there is no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and Sprott does not assume any obligation to update or revise.

Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any fund or account managed by Sprott. Any reference to a particular company is for illustrative purposes only and should not to be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any fund or account managed by Sprott will be invested.

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