31/01/2026
The Expiration of Conviction: Why even the brightest stars in your Portfolio have an "Expiry Date" ๐
In 2019, I kicked off my international investing journey with two high-conviction bets: Kirkland Gold (now Agnico Eagle Mines) and Silver (SLV). Six years later, these "shining stars" have delivered a combined IRR of 41% per annum.
Here is the breakdown of my 6-year journey in wealth compounding as a Retail Investor:
๐ Agnico Eagle Mines (Formerly Kirkland Gold)
๐ The Stats: Back in 2019, this was a "dream" balance sheetโdebt-free with a $700M cash reserve and sales hitting $1.38B (51% growth YoY).
โณ The Performance: They maintained an incredible Net Profit Margin (NPM) of 29%โ35% and ROCE of 10%โ16%.
๐ฐ The Outcome: Even with the noise of a $22.4B merger, holding on allowed the company to unlock its true value, yielding a 420% absolute return.
๐ Silver ETF (SLV)
๐ฅ The Strategy: I treated Silver as the "midcap" equivalent to Gold. Silver acts like a bouncy ballโit stays quiet for a long time but rises much faster than Gold once the momentum shifts.
๐ฐ The Outcome: Clocked a 340% absolute return.
My Top 3 Learnings for Retail Investors & Working Professionals:
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Compounding Requires Patience: Real wealth is built by staying the course during periods of volatility. Great companies and commodities need time to unlock their true growth potential. Don't let short-term "noise" shake you out.
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Understand the Cycle: Gold and Silver move hand-in-hand, but silver is the "faster" sibling. By mastering the Gold-to-Silver ratio (which was a high 86:1 in 2019 and has compressed to ~50:1 today), you can identify when one is "cheap" relative to the other.
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Conviction Needs a "Shelf Life": As busy professionals, we canโt watch the ticker every minute. Protect your capital by setting exit rules. If you see a 10-15% drop, be ready to protect your gains. Set targets based on your goals, but always be prepared to change course when the market data changes.
Are you holding your stars for too long? Letโs discuss in the comments! ๐