Ron Paul's golden portfolio

The presidential candidate likely did very well focusing on metal-mining companies in 2009 and 2010.

By Kim Peterson Jan 5, 2012 2:43PM
Image: Golden Nest Egg (© Chris Collins/Photographer)Republican presidential candidate Ron Paul's investments are, well, let's just call them unusual.

The Wall Street Journal describes his choices as weird and was immediately hammered by readers calling foul. I'll say this much for his picks: They're definitely unorthodox, but they've seemed to turn out well.

Paul didn't like bonds or well-known mainstream stocks in 2010. In fact, he actively bet against U.S. stocks with a small stake in the Prudent Bear Mutual Fund (BEARX). You can see Paul's investments on his Congressional disclosure statement (registration required) for 2010.

Instead, Paul favored stocks of companies that mine silver and gold. He had 64% of all assets loaded into those, reports Jason Zweig of the Journal.

Here are a few of his picks:

AgniCo Eagle Mines (AEM), which doubled in price from 2009 through 2010 before plunging 50% in 2011.

Barrick Gold (ABX), another solid performer, went from about $33 in early 2009 to spend much of the past year between $45 and $55.

Goldcorp (GG). He owned class-A shares in this case. Goldcorp had a spectacular rise, going from about $27 in early 2009 to surpass $55 last April. These days it trades for about $45.

Iamgold (IAG). We're seeing the same pattern. The stock went from $6 in early 2009 to more than $20 last spring. Lately trading at about $17.

Newmont Mining (NEM), which has jumped almost 70% from early 2009.

Clearly, Paul was on the right side of the gold bet. And though he doesn't have to file his precise holdings, we can get a pretty good picture of a nice profit he made in 2009 and 2010. The Journal notes that the NYSE Arca Gold Bugs Index (HUI.X), which tracks mining stocks, has gone from $65 to $522 in the past decade.

Concentrating 64% of your assets into any category is risky, and we don't know what Paul has done with his portfolio lately. Some of Paul's picks, especially AgniCo Eagle Mines, lost their momentum last year.

The Journal looks at his portfolio as a lesson in diversification. "Above all, it is the simple risk that we will end up so sure of our own view of the world that the future is certain to catch us by surprise," Zweig writes. "And this is the risk that Rep. Paul's portfolio doesn't appear to insure against at all."

56Comments
Jan 5, 2012 4:28PM
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the guy picks good stocks when everyone else looses money and he is weird.  Come on if this is not media bias i don't know what is.  Really why are these media outlets scared of someone who wants to leave them alone?
Jan 5, 2012 5:48PM
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i wouldnt call it weird to invest in gold stock at a time when gold is at an all time high or even any precious metal....i think its smart..a bit risky but smart...but any thing in the stock market is risky now a days.. and by the way not all  of RON PAULS supporters are young...im 60 and a democrat..so go figure....i dont understand it my self but i like him and i like his character and his stance on the constitution and his feelings of not in your face type agression toward foreign affairs...I think its  time america mellowed out some and started acting  more civilized and spent more time working toward peaceful solutions instead of forcefull my way or the high way solutions..and i think rom paul  has a lot of the right kind of ideas that is good for america and is more of what our founding fathers  wanted for our country.maybe im wrong...who knows...but we have had 30 or more years of this agressive approach and its been bad policy, thats all i know...maybe its finally time to give something weird a try so to speak....smile..
Jan 5, 2012 6:41PM
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The news media is getting brazen about their tactics against Paul - he is the ONLY candidate speaking the TRUTH - his voting record is available for all to see - he has at every point voted for the American people and against the insider power - controlled by the oil cartels, money cartels, big pharma cartels and news cartels .. smacks of totalitarianism - we should wake UP!
Jan 5, 2012 5:23PM
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There's a reason he has done well, he's a smart man not a weirdo!

I too am on the Paul train and have been for years and agree Rich it's not just the young,I'm 55 this year.

Ron Paul in 2012  

Jan 5, 2012 5:45PM
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Ron Paul  threatens the status quo as no other politician does today. If he manages to win the nomination, he will win the election. This would destroy the  comfortable club by drawing on freedom lover from both sides of the spectrum. Imagine, no more providing for Europe's security, supporting our ememies with bribes, and the government out of our bedrooms and mediciene cabinets. The statist oligarchy trembles.
Jan 5, 2012 4:52PM
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So what's the point?  Dr.Paul is a gentle, compassionate, and professional man. I am wearing one of Dr. Pauls'  long sleeve t-shirts today. It's really really cool, just like Dr. Paul. He's so far over the head and shoulders of all the rest. As they say garbage in garbage out. The media will see that we wind up with more garbage. Dr.Paul has no chance. Very sad for a failing country. But thanks for your effort Dr. Paul, and at 66 I am very proud to be on your team, and I am not giving up. Every once in a while good things unexpectedly happen. Come on America wake up. Yeah that right! 66,,, It's not true that all of Dr. Pauls' supporters are the wonderful young of America. A lot of us older folks are smart to. My suggestion for the public is to order the blue long sleeve Ron Paul T-shirt...it really is cool. You will not only look good, but also show how smart and mainly; how concerned for this wonderful country you really are.
Jan 5, 2012 6:21PM
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And, it's obvious that our money has been destroyed by the banks ... he knows that gold
and silver are 'honest money ' ..... why malign someone for knowing the TRUTH  ..

Get an education before you post such idiocy ...

Jan 5, 2012 6:20PM
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The news media trying to BASH Paul again --- my God, this is looking like a mutiny  ...

I'm sick of the 'controlled news media talking heads' .. why don't they move to
Russia if they like power from the top so much

Jan 5, 2012 5:21PM
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I'd say Dr. Paul's investments decisions are very wise.
Jan 5, 2012 4:59PM
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Media bias is prevalent when discussing Ron Paul. Why is it that anyone not seeing things your way Ms. Peterson is considered "Weird". Is it you or your editor. Either way, I'm sure you both have journalism or english degrees, so I'm sure you could have came up with a better tag line for the articles title. You should be ashamed. Step up to the plate and be an unbiased professional writer.

 

By the way, what is in your portfolio Ms Peterson?

Jan 5, 2012 7:44PM
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Everything Ron Paul does, by today's standards, is "weird" or "unusual". That's exactly why I'm voting for him.
Jan 5, 2012 7:40PM
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I will vote for Ron Paul, I am  52 yrs.old and believe he may be the only "non-crook" in the whole race. Personally, I believe also of his idealogy; that it would make America Great again. End foreign aid, except in disasters. SECURE our borders. Start using our own oil, 100%  We would be respected in a whole new way as a nation.,i.e.China.
Jan 5, 2012 7:28PM
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It would appear the Ron Paul's investments are in line with his beliefs.
Jan 5, 2012 5:46PM
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What's weird about making money? It appears Mr. Paul made some astute investments. My portfolio with wells fargo lost 15% last year. You can't argue with success.
Jan 5, 2012 7:53PM
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I will be voting for Ron Paul, who stands alone when it comes to being the ONLY candidate worth going to the polls for.  Big banks and corporations are fearful of him because he speaks the TRUTH and exposes them.  He is fearless.
Jan 5, 2012 7:29PM
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Doesn't take a genius to see what the overall trend is economically in the world.....DEBT!...  And bet accordingly.  What you folks in lala land see as whacky, there are plenty who think it's common sense.  Keep thinking in the box, you tools.
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@Just write: Read the post a little more carefully. It was the Wall Street Journal that called his portfolio "weird."




Jan 5, 2012 7:04PM
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Contrarians do well in a Bear market, and do less well than the normal investor in a Bull Market - this is not news.
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I support Ron Paul and salute his ability to pick winning stocks. I have been a dismal failure in the stock market. I gave up buying stock and purchased real estate. My logic was, They aren't making anymore land and real estate has done quite well. Guess what, I suffered a 30 some odd percent loss in my holdings. I now have CDs earning a great 2.75%. I'll probably loose on this as well. It's time we elected someone to the White House that sees corruption and has the ability and backbone to kick rearends and take names. I'm 70 years of age, won't happen in my lifetime if ever. I love America but I'm so ashamed of our corrupt government. We will soon be a third world country at the rate the crooks are destroying the economy.
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