Debt Ceiling Creating Opportunity for long Sighted Investors

I watched some of the Berkshire Hathaway annual meeting a couple of weeks ago and here are a few of Warrens comments I really liked:

The debt ceiling will be raised since no one wants to be responsible for putting people out of work and destroying the economy.

There will always be opportunity in the stock market because of short sightedness.

Both of the above happened this week in the metals markets and OWI was able to purchase more great mining companies at great valuations. We are focused on 5-15 years down the road and are confident in our research so we can go against the crowd and buy when the masses are scared.

I read Rio Tintos annual report last week and found an interesting comment:

“We expect the energy transition will add as much as 25% in additional demand above traditional sources across our key products by 2035.”

The outlook for the best miners in the world is good, so we want to be aggressive when the markets let us. 2023 has seen some good market shaking events (SVB and Debt Ceiling) and OWI was able to take advantage of both of them.

A lot of our investing principles have been hit on this metals investment, so OWI believes there is a good chance we can generate a good return over the next 5-10 years. We also believe we have a good margin of safety if the energy transitions doesn’t bring above average returns. Our investments are spread across the largest and best miners in the industry, all very well managed, great balance sheets and strong competitive advantages. So OWI’s capital seems safe but also has a nice kicker if the energy transition really does create above average returns. Also, we get paid handsomely while waiting since these miners pay good dividends.