Bill discusses his trading history. He started in the early 1980’s as a stockbroker and then moved into venture capital. Since 1989 he has been focused on the resource sector and other asset classes that are publicly traded. When a trade goes against what you anticipated you should be prepared to sell and cut your losses. He says, “There are great opportunities all over the world.”
He discusses what happened in October 1987 when he learned the hard way about leverage. In a matter of 48 hours, he lost everything that he had made, and many of his clients took losses. To this day he doesn’t use leverage due to the risks involved.
Asset classes are being distorted by large crowds of people with very little knowledge. There remain massive amounts of excitement. Some of this excitement surrounds the cannabis and cryptocurrency markets. He sees similarities between cryptocurrencies and the dot.com bubble. Greed is running rampant, but it could still be in the second inning, or we could be in the eighth.
Supply and demand imbalances in real estate are something to be careful of as people often think that markets will always go higher. Then they will usually over-leverage themselves.
He runs a fairly high ratio of cash to investments. The investments he makes are high risk, but they are high reward. He looks for companies with high reward potentials and is careful to minimize risk to the downside. If a bear market occurs or an asset class collapses those with cash can buy. He sees excellent opportunities in the uranium space.
Talking Points From This Week’s Episode
• Housing Bubbles and the risk of using excess leverage.
• Markets don’t always go higher contrary to popular opinion.
• Bitcoin Euphoria could be problematic.
• How to manage high-risk high-reward stocks.
About Our Guest
Bill is President of WAT Capital Corporation. He was President of 98 Corporate Group Resources Limited for 27 years where he helped provide financial services for public micro-cap companies, including accounting, legal, regulatory, shareholder relations, project management, and corporate finance. Prior to that, he was an Investment Advisor with Pemberton Securities.