Latticework Investor

Value Investing

Lloyd Khaner of Knaner Capital

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Notes from the Value Investing Congress Twitter feed.

Lloyd Khaner of Knaner Capital

  • Khaner’s presentation: “Why some of the Best Value Investors Own Gold”
  • Khaner formerly shunned gold, until mid 2000’s
  • Gold to oil ratio typically 1 oz gold to 15 bbl of oil
  • Gold to DJIA typically 1-2 oz of gold to DJIA; currently 13
  • World Gold supply dropping, producing 2500 tons per year, consuming 4000 tons
  • Central banks net buyers of gold last year first time since 1980
  • Khaner- gold is safe haven even if it does not appreciate; holds value
  • Deflation: Homerun for gold in the 1930’s was to own mining stocks
  • Same inflation trajectory as last gold bubble would put price near $5k/oz
  • Gold is the last currency standing–can’t print it
  • #1 reason value investors own gold: currency devaluation
  • Khaner does not specify best way to get exposure to gold; lists ETF, physical gold, mining companies
  • But if you buy mining company’s, look for good mgmt, good history, low prod costs, mgmt that has skin in the game
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Written by latticework01

May 6, 2010 at 9:49 am

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