CNN includes portfolio manager Chris Sargent in article about mining stock

CNN recently published a guide to investing in the mining industry and included BFS portfolio manager and research analyst Chris Sargent as one of their expert voices. Chris studied geology in college and watches this sector closely.

The article provides the basics on the mining industry – including the wide range of companies involved in the extraction business – as well as the unique potentials and pitfalls of investing in it.

In a good economic environment, mines can flourish and lead to exponential gains for investors. Yet, the risks are considerable and go beyond demand for metals and minerals. As Chris points out in his comments, accidents, bad management decisions and political instability in resource-rich countries can lead to shut downs in production.

“A lot of the mines today that are cheap and have really good yield are in iffy jurisdictions,” Chris told CNN.

Chris shares his view that more stability can be found in the largest mining companies. While these operators are not likely to produce the kind of explosive growth seen with smaller companies, investors who go with the established players benefit from dividends and buybacks.

“They pay out a lot of cash to shareholders,” Chris said.

To read more about investing in mining, including Chris’s thoughts, read the article at CNN Underscored.