Why natural resources?
I've got an interview coming up with a natural resources group, metals and mining specifically I believe, and I'm having trouble finding a good answer to why I'm interested in natural resources in particular. I've got no prior exposure to the industry to refer to and I'm just drawing a blank. Any pointers?
tell them you used to be a miner
This is an extremely underrated comment hahaha
You want to know how to deal with gold diggers when you will be rich.
Watch the Jeremy Grantham interview on Charlie Rose and then shamelessly steal his talking points about natural resources (dumb it down a bit though).
http://www.charlierose.com/view/interview/12812
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Or you could just read the shitty analysis on zero hedge that has been consistently wrong for years about why gold is the best investment ever.
Great Jeremy Grantham interview.
No opinion for the OP, tho :(
I've been involved with the precious metals mining subgroup for awhile at my school's investment group (3 years). I have done an interview like this before, and this is how I went about it. I'm no expert, but here are some reasons I would stick with:
1) High Risk/High Reward: I would say a large amount of the industry are small-cap players, with the exception of some mid-cap and large-cap players. I am personally interested in "finding a winner" out of a group of small-cap mining companies. I usually stick with American and Canadian based companies because political issues can complicate things with international companies, but many mining operations are outside of North America. Different business structures, margins on their company, and investor-backed projects are just some reasons how I find winners. I like doing the research, and I like finding "the perfect one."
2) Business Models: This is where you can mention that some mines have different business models, as a way to transition from different business structures. Some mines give out all of their production to a specific company, while some mines like to keep a diversity of clients. This is where I mentioned a specific stock that backs up the reasoning.
3) Different Metals: Silver, gold, platinum, and palladium are examples of what metals companies mine. Some metals do better than others due to emotional investing in the market, supply and demand, global performance, etc. For example, platinum had a brief spike in price because of the strikes in South Africa. Worldwide events affect metal prices. I like how I have to keep up-to-date on the world news to find a key investing strategy.
There are a variety of other reasons, but these are some examples of what I used. It was successful in that I got an internship offer afterwards, so I must have done something right. Good luck!
I guess you should figure this out on your own first and foremost. After all, you will spend a lot of time in this space if you get the job. As for reasons why other people enjoy it, I think the most common reason is the macro and geopolitical nature of these markets. In general the marginal producers are politically unstable and they all have different motives. When deciding to invest you will need to factor in political stability, the supply/demand picture etc. Also, you are extremely short end loaded in term of capes and backloaded in terms of cash flow. This has interesting implications for your investment decisions (especially from a debt perspective).
Those are some pointers. Could really go on for ages but as I said, this one is really up to you.
Dress up like Goldmember and just scream "I like Gooooooollddd" when asked this question.
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