Three Ways to Benefit from the Expertise of Investment Specialists: Globex Mining, Mutares, Berkshire Hathaway

Globex Mining: A Success Story

The Canadian company's business model does not fit into conventional categories such as a mining conglomerate or an exploration company. Globex Mining pursues the strategy of a resource incubator or prospect generator. This means the company identifies and acquires promising resource projects. It brings in partner companies to further develop these projects, including securing financing.

The partners commit to conducting exploration work over several years, spending defined investment amounts, and paying in cash or shares. In return, the acquirers receive the right or an option to gradually participate in the projects or to take them over completely. In addition, Globex frequently secures royalties on future production.

Founder and long-time CEO Jack Stoch is the central figure behind the company's success. Stoch has a proven track record of acquiring mineral assets countercyclically when the industry is weak and generating added value as commodity prices rise.

As of today, Globex holds just over 270 mineral assets based on more than 100 royalties and option agreements, with a geographic focus on the US and Canada. About half of the assets are concentrated in gold, silver, platinum, and palladium. The remainder is distributed nearly equally among the categories of industrial metals, specialty metals, and minerals. This makes the business model particularly advantageous for shareholders. With limited capital investment, investors can benefit from above-average leverage through successful commodity projects.

Globex recently reported on the successful developments of two portfolio companies. Antimony Resources announced the discovery of high-grade antimony deposits in rock samples in the "South Zone." The Canadian company holds the highest-grade deposit of this critical metal in North America. The importance of antimony is steadily increasing, as the raw material is essential for many industries, including the defence sector.

Globex also reported positive developments regarding the Duquesne West Project, which is under option to Emperor Metals. According to the latest data, the mineralization zone of the gold project can be extended along strike and at depth, with the potential to increase both the thickness and grade of the mineralization.

Over the past 12 months, the share price has temporarily doubled to just over CAD 2.80. In the wake of the correction that began in the first quarter, the stock has now dipped slightly below the CAD 2 mark, bringing the company's current market capitalization to CAD 107 million. The cash and securities portfolio of just over CAD 40 million is extremely solid. With a 14% stake, management is also demonstrating "skin in the game."

COO David Christie described the key advantages of the business model at the recent International Investment Forum.

https://youtu.be/EW22N6jb9W4

Mutares: An Exciting New Chapter

The specialist in carve-outs and turnarounds has opened a new chapter of growth. With the capital increase of just over EUR 100 million carried out in the spring to accelerate growth in the US and China, as well as the expected completion of the largest transaction in the company's history, the company raised its medium-term forecast.

By 2030, revenue and earnings for the holding company and the group are expected to grow by at least 25% per year. For the current fiscal year, Mutares projected a 40% increase in consolidated revenue, ranging from EUR 7.9 to 9.1 billion. The AG's (holding company's) profit attributable to shareholders is expected to climb to EUR 165 to 200 million, up from EUR 130 million in the previous year.

The company sets and achieves high profitability targets. The key return target is a ROIC (Return on Invested Capital) of 7 to 10x over the entire investment cycle, which typically spans 3 to 5 years. In addition to exit proceeds, dividends and consulting fees are also included as sources of revenue.
Shareholders also benefit from an attractive and sustainable dividend policy and a base dividend of EUR 2. This will be paid out soon, in early July. Analysts, on average, assign the stock an upside potential of around 70%.

Berkshire Hathaway: One Legend or Several?

For decades, Warren Buffett and his partner Charlie Munger shaped the fortunes of one of the world's most famous investment firms. Munger, who passed away in 2023, brought about a lasting change in the investment approach. As a value investor, Buffett was on the hunt for heavily undervalued stocks. Munger had a different way of thinking. "It is better to buy a great company at a fair price than an average company at a great price," said Munger. The company's increasingly technology-oriented investments should be viewed in this context. BYD, Apple, Alphabet, and others would not have fit into Buffett's investment strategy.

Most recently, Berkshire invested nearly USD 10 billion in Alphabet's capital increase. Now that the reins have been handed over to new CEO Greg Abel, the question arises as to whether Berkshire Hathaway will participate in the mega-IPOs of SpaceX and AI heavyweight Anthropic. Buffett was not a big fan of IPOs.
By investing in Berkshire Hathaway, investors are backing a seasoned and successful investment specialist who has navigated even challenging market phases with skill over decades.

Globex's approach combines geological expertise with entrepreneurial capital discipline and countercyclical behaviour. Through the stock, investors are investing in a broadly diversified commodities portfolio in a supercycle. Mutares and Berkshire Hathaway are also seasoned investment specialists in their respective fields.