Charlie Munger, who is Warren Buffet's right hand man, made an interesting comment on the weekend. It speaks to my own personal investment philosophy, and my investments in Spider Resources (SPQ) and a number of other Ring of Fire junior exploration companies.

Here's a small paragraphy from a Financial Post article on the proceedings at the Berkshire AGM this past Saturday in Omaha.

Vice chairman Charlie Munger agreed with Mr. Buffett’s view about diversification, adding that “diversification is for the know-nothing investor.”

For those on this forum that have been doing their due diligence - aka "the knowing investor" - and who have the patience and wherewithall to hang in there - a focus on SPQ should pay off handsomely. (Notice that I have used the conditional "should". I am not all-knowing.)

To my mind, with the best McFaulds' geology, top-notch management, and a smart JV strategy, these all seem to mitigate the investment risk in Spider Resources. Furthermore, when we (the knowing investor) see some of the largest mining corporations in the world having very close looks - and in fact, staking claims! - then I think "Where there's smoke, there's fire."

(I must say that there is nothing wrong with diversification - you just won't make as much.)

Finally, if you also subscribe to the philosophy of "Go big, or go bust", you can not only focus your investment, but you maximize it. And you have the potential to do this with Spider Resources.

These are my thoughts only. Continue reading this forum as part of your due diligence.

Snug