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RE: TIB: Today I Bought (and Sold) - An Investors Journal #10 - Aegon Insurance, US Banks, Lithium and USD
Nice, I dived into the lithium junior miners last year with a purchase of LIXXF.
I have ALB in my IRA at cost of low 50's/share and it has done wonderfully.
Cool. Looks like you got in at the bottom too (unless of course you were in way before - 2012 was the time before it was in the 50's). I had a quick look at ALB chart [note for other readers: Albemarle Corp is one of the large lithium miners].
It has nearly doubled since the early 2016 lows whereas LIT ETF has only gone up 47% . This stands out in the Buy:Sell chart - Buy ALB and Sell LIT
ALB outperformed LIT in 2013, then tracked together and raced away from late 2015. This is why I reduced exposure to the ETF and focused on the pure-play miners.
I purchased ALB in Feb of '16, so got a nice run up this year. With the increasing use of lithium, I felt that it was a good choice. I got LIXXF too as a junior, and it has had its ups and downs but I am up currently. With the juniors I figured I had a little bit of time to get onboard since many of them are years away from production. I would like to grab a few more companies here and there to see if I can find a homerun by around 2021 or so.
My trick for the juniors is to buy a whole bunch rather than trying to identify a winner - say $250 to $500 a pop. With low trading costs (say $1 per $250 trade) in US markets that is where I would lean. I am lazy and I am not good at being awake for US market open times - so I do Australian juniors too and trading costs are closer to $20 - so one has to buy lots of $1,000 or more.
Once one or two start to develop in the right direction, I add to those holdings and scale in that way.
That is exactly what I have been doing with junior gold miners. I just need to research which of the lithium ones are looking the most promising.