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Although this is the type of market environment where we should have the most difficulty in exceeding this high standard, we achieved a return of 31.37% since inception (7 months) or 59.63% on an annual basis.

The cornerstone of value investing is not about low multiples, but rather, it’s about the concept of margin of safety as Benjamin Graham noted in his book The Intelligent Investor. “Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety”.

As value investors, we tend to value companies on the basis of fundamentals not popularity. We try not to get caught up in Wall Street hysteria.

Canadian companies dominate the gold mining industry, 5 out of 10 largest companies are Canadians (Maya Gold and Silver is irrelevant), and also the biggest scandal in gold mining history was Canadian- a company called Bre-X Minerals.

We talked about value investing for the passive vs active investor, valuation metrics, Lembirik Group’s investment philosophy among other interesting topics. GuruFocus.com is engaged in the business of financial news, commentaries, research and publishing for value investors.

Unfortunately, for every IPO like Microsoft that turns out to be a success, there are thousands of losers. Similar to a lottery ticket, we only focus on the few winners but we conveniently overlook the fact that thousands of people lose every day. An intelligent investor should conclude that IPO does not stand for “Initial Public Offering” only, but also “It’s Probably Overpriced”.