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Mutual Fund News


Special to The Globe and Mail

Bob Gauld, 70


Retired controller for a U.S. manufacturer

The portfolio

About 65 per cent in mining companies with metals in the ground, including Goldcorp Inc., Barrick Gold Corp., and Silver Wheaton Corp., and the remainder in blue-chip dividend-paying stocks.

The investor

Despite - or perhaps because - his father was a bank manager who thought anything more than GICs were risky, Bob Gauld's approach to investing has always happily welcomed risk. Not only did he quickly realize as a CA that, between taxes and inflation, GICs wouldn't leave him much further ahead, he says he had a natural love of investing. "And the thrill you get when you see something go from almost nothing to many dollars."

His mining stock strategy

Management is a key criteria for Mr. Gauld. "I look at what they've done in the past, who they have working with them, and if they've hired someone who can bring the project to fruition." The most important factor, though, is that they have prior success. "The same guys will do it again and again and again."

His love of investment clubs

Mr. Gauld is active in two investment clubs. One meets monthly, with the focus on having members explain why they may have bought or sold a stock over the last 30 days. The second club hears presentations from representatives of companies the organizers believe will be of interest.

Best move

Mr. Gauld is a big fan of Silver Wheaton. Years back, he had invested in Wheaton River Minerals, which merged with Goldcorp in 2005. Goldcorp then sold off shares in Silver Wheaton, making it a pure-silver play. Mr. Gauld feels there's a good chance of strong inflation if the world economies continue to remain unstable, "and that will make gold and silver a good place to be."

Worst move

Mr. Gauld readily admits he "fell in love" with the Yellow Media Inc. story, as well as the strong yield - around 12 per cent when he bought it two years back at $6.75. But the once blue-chip income trust has cratered, last closing at 14 cents. He dumped most of his holding in December at just 19 cents.


"I really believe you've got to educate yourself. ... Even if you're dealing with a broker, say 'I'll check it out and get back to you.'"

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