Man look at that performance difference between $HCC and $AMR. I wish I wouldn’t seen the superiority of $HCC years ago. I didn’t realize being diversified and building another mine would be so beneficial.
Yeah I would have allocated way more to $HCC instead of $AMR when I realized their better cost curve position. But hindsight is 20 20. If $AMR can do another sub cycle swing due to supply constraints, I might sell the position altogether.
Pabrai keeps buying $AMR but I’m starting to realize some of these commodity companies are reliant on the crazy BOOM years to propel their stock performance which isn’t ideal and I don’t really like. We’re hoping for a shock in the economy. I’d rather hope for consistent growth and increasing cash flows.
Absolutely, it’s hard to model compounding growth with cyclicals in general.
I think in a recent interview he said that Warrior is the better play between the two because of the cost curve advantage keeping them cash flow positive during lean times.
Man look at that performance difference between $HCC and $AMR. I wish I wouldn’t seen the superiority of $HCC years ago. I didn’t realize being diversified and building another mine would be so beneficial.
Yeah I would have allocated way more to $HCC instead of $AMR when I realized their better cost curve position. But hindsight is 20 20. If $AMR can do another sub cycle swing due to supply constraints, I might sell the position altogether.
Pabrai keeps buying $AMR but I’m starting to realize some of these commodity companies are reliant on the crazy BOOM years to propel their stock performance which isn’t ideal and I don’t really like. We’re hoping for a shock in the economy. I’d rather hope for consistent growth and increasing cash flows.
Absolutely, it’s hard to model compounding growth with cyclicals in general.
I think in a recent interview he said that Warrior is the better play between the two because of the cost curve advantage keeping them cash flow positive during lean times.