Course 409: Hard-Asset Stocks
Conclusion: Appraising the Asset
In this course
1 Introduction
2 Has Barrick Capitalized on Its Natural Endowments?
3 What about Growth?
4 What Has Company Performance Meant to Shareholders?
5 Has It Delivered the Diversification Benefits of a Hard-Asset Stock?
6 What Does It Cost?
7 Conclusion: Appraising the Asset

Barrick meets the most important criteria for a hard-asset stock: plentiful reserves and low production costs. And the stock's historical performance, often zigging when the market has zagged, suggests that it is good for diversification. Its valuations at the close of 1999 were high relative to those of similar stocks, but Barrick's solid financials mean the premium is probably worth it. That said, hard-asset stocks, Barrick included, probably don't deserve star billing in most portfolios. These shares are extremely volatile, dancing to the syncopated rhythms of the global markets for gold, oil, and other natural resources.

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