By Dan Ferris in DailyWealth:

Real investors almost never buy gold stocks.

Mind you, I'm not talking about traders. I'm talking about investors. I'm talking about people who know the value of owning a great business for decades... people who have proven they can intelligently deploy capital and compound wealth at double-digit rates for a generation. Great investors like Warren Buffett, Charlie Munger, and Peter Lynch usually laugh at the thought of buying equity in a gold mining business.

...Real investors avoid low-margin businesses. They avoid lots of risks. Real investors are drawn to businesses that require little up front investment and generate thick profit margins. Take Microsoft, a stock I've discussed in these pages before...

...But real investors should be buying gold stocks by the truckload right now - just not your typical gold mining stocks... If you want to make a fortune in the next few years, you should be buying "prospect generators."

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