How to Turn $50k into $1,000,000 via Small-Caps with Private Investor Chris Moore

How to Turn $50k into $1,000,000 via Small-Caps with Private Investor Chris Moore

you are listening to Mining stock
education where you’ll learn from the
top leaders in the natural resource
sector and uncover quality mining
investment
opportunities I took
$50,000 and put it in and ended up
making close to a million so it was a uh
it was very interesting right because a
i attributed it mainly to my
skill um but what I realized is that I
really knew nothing and and subsequently
I ended up my next few Investments ended
up losing most of that thanks for tuning
in to MSE I’m Bill Powers your host in
today’s show you’re going to hear from a
listener of Mining stock education that
I’ve gotten to know he’s an accredited
investor with a successful stable
business which allows him to deploy
money into the more speculative resource
stocks he’s also experienced a huge win
and you’re going to learn in today’s
show what he did on the other side of
that huge win so Chris Moore thanks for
coming on Mining stock education for the
first time could you please introduce
yourself to listeners and how did you
get interested in small cap resource
stocks hey Bill well thanks for having
me pleasure to be here um yeah so I am
lucky enough to run a business in a very
uh stable industry as you’re saying and
and so I decided when I graduated from
University that I could probably take a
little bit more risk but uh in doing so
I probably took way too much risk and uh
as you say I I started off my investment
career with a with a substantial win um
I took
$50,000 and put it in and ended up
making close to a million so it was a uh
it was very interesting right because a
i attributed it mainly to my
skill um but what I realized is that I
really do nothing and subsequently I
ended up my next few Investments ended
up losing most of that so that downhill
slope I actually learned way more than
the than the benefit of of gaining a lot
of money can you give us an idea of how
you found this big you know 20 bagger
$50,000 to a million H what was the
process of that
like I kind of fell into it you know you
know you’re racing out of University
still have connection with high school I
had a very intelligent very smart fellow
that I still keep in touch with now who
worked for this small little technology
company uh so blindly I put a lot of
money into it um but hey guess what was
going on at the same time Doom bubble
right so yeah this little company got
swallowed by a huge multinational which
then in turn got swallowed by even a
bigger
multinational unbelievable unbelievable
but uh yeah in the end actually
interestingly I didn’t I didn’t cash out
at the top um and ended up giving back
30% of that you know Everyone likes
talking about their their wins but in
the end I didn’t win as much as I
thought I did because I didn’t know when
to sell and you know but again it was
interesting for me because it created a
certain amount of overconfidence in in
my case you know I was willing to you
know kiss my biceps and say who you’re
hot stuff and in the end I I I didn’t
know anything uh I I fell into a lucky
situation um I did well but as I say
subsequently the next four Investments
really taught me some huge lessons so
you got a million dollars you sold it
it’s in your account now and it sounds
like you were itching to spend it after
you made that huge win would that be an
accurate
statement yeah so luckily I my wife
actually s said you know we should take
some off the table like no no it’s going
to go to two million like like let’s not
sell let’s not sell anyways as
marriage is it’s compromise uh we sold
enough to buy our first house so kudos
to her because you know in the end you
know that’s ultimately what saved us but
I was more keen to keep it in the
market and it’s an interesting
psychology when you get into a winning
situation
the tendency is to think well it’s gone
this far it’s going to go
further but as I look at it in
retrospect if I look at the
chart there were massive signs that it
was it was peing and so in this in this
win and in my subsequent losses I’ve
really had to go back and take a look at
how what mistakes did I lose or did I
make and I made a lot of them um
what mistakes did I make that I could
have avoided and from there tried to to
move forward Chris I spoke over the
years with a very well-known resource
fund manager and he told me Bill when I
feel too smart in my speculative
resource Investments that’s when I take
money off the table and put it into real
estate and when I feel like the resource
sector is horrible that’s when I take
money from Real Estate and put it into
the resource sector so that that went
with me so when I had my first multi
figure win
I took money from that I bought a farm I
bought tractors I invested in real
estate I put it in real assets so that
even if I lose on all my other small cap
speculations I told my wife at least I
got some like things I can literally
walk on or
drive exactly and and you know I mean I
was I was young I was right out of
school I had like a negative net worth I
mean I I to have this win man I was
walking on air like it was was it was a
phenomenal
feeling likewise it was an incredibly
awful feeling to then go through the
next 10 years and learn everything that
I thought I knew and you know to part of
the
investment process that I found is is
learning how to sell you got to learn
how to take your wins and move on and
yeah that’s that’s a really tough lesson
to have so do you have a guy guing
principle now after you have a big win
is there like a percentage which you’ll
allow yourself as agreed upon with your
spouse to redeploy into risky things and
then the rest have to go into dividend
yielding stocks or something like
that yeah it’s interesting you know you
know after after the fourth loss and I
had literally lost more than I had made
in the first one I had a choice you know
I could either double down and take
responsibility for the fact that I Squat
and continue to learn and and that was
the biggest realization because I didn’t
know anything I didn’t know anything
about technical analysis I didn’t know
very much about fundamental analysis I
knew I knew a little bit and I read a
few books but what I need to determine
was how I was going to solve the problem
because here I was 15 years into my
working career and I had gone
backwards so I just decided that I would
do a hybrid of that
between my business and then half of my
investments I I put half my investments
into somebody managing them myself or
their s um and then I just decided that
I would learn and just be a sponge so my
daily routine is I’m up at four I work
out for an hour I do two hours of stock
research and I go to work for eight
hours and I come home and spend the rest
of the evening with my wife so yeah it
it takes a lot of dedication and part of
it is just accepting the fact I H up you
know you got to you got to take
responsibility for the fact that you
know somebody can make a recommendation
but you don’t know what’s behind door
two and that is the problem because I
being young being full of overconfidence
I heard someone say this so I said well
this is going to do this and I you know
there were a lot of I knows instead of
saying what’s behind door number two for
these people you know they sang a song I
drank Kool-Aid and I lost because of it
Chris do you think that if you didn’t
lose money on the other side of that
million doll gain that what would have
happened if you if you didn’t lose
that’s a good
question I think depending on you know
if you make a gazillion dollars and you
can retire and then put it all into you
know gic’s then it’s all good right but
um you know if you’re going to continue
playing the
game what I’ve determined is that you
just have to take your winnings and then
put it into something safe and then and
then you know constantly think about it
as net worth you know that that’s
something that I really had trouble
figuring out it’s like you got to think
about net worth because you know you may
make a million dollars in your first uh
investment maybe your your net worth
goes up to a million but what if what if
it falls back like even if I had taken
half of that which I took some of it to
buy this house but even if I taken half
of that and put it into something stable
it would have you know that itself was
20 odd years or 25 years ago right even
at 4% that’s a huge Nest a for for most
people including me so you know if I
hadn’t done
that knowing me I’d probably have have
found some investment that I would have
learned a lesson um yeah investing is
interesting right because it makes you
learn more than anything about yourself
like you know are you overconfident
uh are you an over Optimist um do you
take everybody at what they say um are
you interested in doing the amount of
work that’s required to get there um are
you trying to this is interesting that I
found myself doing are you trying to
approve your thesis are you trying to
disprove your thesis I spend all my time
now trying to disprove my thesis I’m
looking at everything that will say this
is a Croc you got to get it so are you
do you air on the side of optimism the
Blue Sky versus the
risks yeah um that’s an interesting
question so who’s to balance you is it
your wife or is it somebody else that
knocks some sense into you yeah there’s
always got to be a balancing factor and
and definitely my my partnership is with
my wife is is is a balancing uh thing
but I would say
that it’s interesting how emotion plays
into the whole invest investment thesis
I’ve been at the top and I’ve been at
the
bottom so you know every time I think
I’m happy you know if I’m happy with my
portfolio I look at how I felt and I
actually wrote myself notes like it’s
funny back in 2008 I wrote myself a note
that actually kind of brought tears to
my eyes because I was down like the the
gut-wrenching feeling of losing money oh
it’s awful it it’s you know they always
say it’s four times worse than than
winning uh it was at least 10 times like
it was a had a young family uh business
to run employees you know as behind the
eightball so you know you know for your
listeners I would say you got to be
careful because in the end you’re
sticking your neck out over that post
and you got to be careful there are a
lot of people singing various songs in
that in the process Chris you’re an
accredited investor but you also buy in
the open market can you kind of talk
through the decision making you go
through to whether you want to invest in
a private placement or just buy the
stock on the open
market yeah um I’m I’m not liquid enough
personally to to do uh convertible
debentures or anything like that so
generally my process is uh in in the
process of taking a look at at the
lessons I needed to learn to move
forward the first thing I decided is
that as I look back at my losses there
were clear chart indicat
that it was topping and you know there
was one company in particular I’ll share
and it was a small high-tech company in
finance and it’s funny I remember like
it was yesterday you know the stock
creaters 23% on one day high volume so I
call up the CEO and you know I was kind
of at that point where I was networking
trying to you know reach out to CEOs
CFOs get an idea of what was going on I
called the CEO I said
what’s going on he says Ah everything’s
good here everything’s good you know
somebody’s quants just picked up or
kicked in I’m like Quant what what’s a
Quant I didn’t know what I didn’t know
and and you know bottom line is that was
a foretelling of the fact that they lost
a contract that was worth half of the
revenue so when I look back at that I
was like wow you knew nothing like as a
me um so with that the first thing I did
is is I taught myself how to read a
chart you know and from there I screen
you know these days in the investment
world I mean a lot of it’s momentum so
good things be get good things bad
things be get bad things and then from
there I started realizing that the the
Arbitrage between smaller companies
versus what it’s worth what it’s worth
versus what it’s trading at is
huge so I started venturing into uh
bankrupt company well almost bankrupt
company
that had great management that I felt
confident but that were in a sector that
had huge
Tailwinds so with that you know I’ve
kind of turned the ship around so you
found your Niche where you feel like you
have an advantage I do and it’s hard
right as a I’m just I’m just a little
guy right I mean I you know I compare to
the multi-billions of trillions of
dollars flowing around the financial
industry I mean I’m small right and I
insignificant and once you realize that
once you realize that what happens to
you really doesn’t make any difference
Sun still comes up still Sun still goes
down um you know but in the end your
life can be maturely affected by poor
decision making and poor allocation poor
selling poor buying I mean the the
components of being able to do this
successfully are huge and that’s why
most people don’t do it right most
people just say okay I’m G you know I’m
going to put put my x number dollars out
to my financial advisor and let them put
it in a mutual fund they could charge me
their 3% because they’re worth it I just
can’t buy that myself so I decide to go
on the route of yeah let’s learn as much
as we as we can Chris with your funnel
that brings you ideas for potential
Investments whether it be a show like
mine or something else or Twitter or
something you see can you talk about
what you do with that information so for
example as someone who runs a sponsored
B BAS podcast literally literally for
the same sponsor I have emails people
thanking me saying because you featured
this sponsor I’m paying for my kids
education and at this with the same
company if it doesn’t work out years
later you know I listen to you and I
lost my life savings thank you very much
how how would you take like sponsored
information from this show what do you
do with
it uh well first of I would say that
anybody putting any skin in the game
needs to take responsibility for that
they do I mean that’s ultimately what I
told myself is like look man you you
mixed up your your thing you thought you
knew more you didn’t know anything you
need to take
responsibility and the internet is
littered with this recommendation that
recommendation the question is is it
management that’s trying to you know
promote themselves so they get an easy
out I mean there’s so many curtains that
there could be another motive and behind
but in answer to your question you know
I I will take ideas on the internet as
merely ideas and then I’ll say first of
all is it a sector that has headwinds I
mean you know or head wins or Tail wins
and you sort of say okay well that’s a
possibility and then you sort of say
okay well is it in the market cap that I
want it to be in because the smaller you
go on market cap the more liquid IL
liquid it is right so it becomes like
Hotel California it’s easy to get in but
you can’t leave right so you have to
really really careful that you don’t
down cap enough that you actually say
this sector has a lot of Tailwinds I
feel good about this let’s go into this
because you may not be able to get out
so again it just comes down to the
challenge of investing their it’s like a
game of golf you can drive but can you
putt can you chip I mean there there’s
so many things they have to look at but
in further in answer to your question I
I run myself now through uh a series of
litmus tests uh including is it a sector
that I want to be in is it a is it um is
the chart looking somewhat okay uh what
is the macro you know because you really
have to look at you know what’s the
economy doing I mean we get so many
mixed messages now on the economy like
what you sometimes you hear from one
person that’s one thing another person
that’s another so you got to kind of
figure out what you believe is is the ma
what I believe can only speak for myself
self um but from there ultimately it
just comes down to filtering going
through the financials is it an almost
bankrupt company can they turn around
does management have it have I talked to
management how do I what’s my gut
feeling from them um and and from there
you just kind of Peace meal your your
positions like they say they’re going to
do this well if they don’t do that then
a little warning sign goes up but you
know you don’t just go Whole Hog put a
whole bunch of money which is exactly
what I used to do it’s like hey it’s a
great idea let’s go throw whack of cash
in there because I was right before I’m
going to right again so again this the
hubris that I feel you know kind of
snucker me Chris I had a really nice
email I got from a listener in Australia
Works a job saved up six figures
deployed it into gold and silver stocks
he’s very bullish gold and silver socks
and he reached out and said but I’m not
confident enough in my own decision
decision making ability with these small
caps and was asking my advice should I
hire a professional adviser now you
mentioned given money to you know a
mutual fund manager and he takes his 3%
fee or whatever but what are what are
your thoughts as someone who’s kind of
grown and learned you’ve had the Pains
of loss you’ve had the Ecstasy of the
wins what do you think if someone’s
going to mess with these little small
cab Junior resource stocks high risk
High reward and if they’re not confident
should they hire an advisor should they
stay away should they just buy an ETF
any thoughts to share
here well I guess I would say caution
caution caution I mean how will you feel
if that $100,000 is gone you know is it
going to ruin your marriage um is it
going to make it so that you’re going to
lose your job I mean you know if if
you’re if you’ve lost you know your life
savings I’ll tell you it really affects
your psyche like it’s downright
depressing um
so you know caution and and the question
really is is how much do you really know
I thought I knew a lot and I didn’t I I
really didn’t and and you know years
after the fact as I learn more and I
become a sponge and I have been a sponge
but there’s still stuff that I learn on
a daily basis you know I was watching a
podcast with Louis v g today and I was
like oh my God like these these guys are
you know they think outside the bubble
so far beyond where I am and I’m just
trying to I’m trying to absorb this
stuff so in answer your your listener
you know be careful I mean there are
sharks in the water and you got to know
you know you take a little bit of risk
but until you have experienced the loss
of that maybe you know 1% of your pot of
of your
portfolio I don’t know I’ve done the
opposite I feel good about it well Chris
thanks for listening to the show thanks
for coming on the show this appearance
doesn’t necessarily do anything for you
you didn’t need to appear you’re not
promoting a newslet or anything like
that so I just wanted to say thank you
for sharing in humility your experience
with listeners um Chris Moore everybody
take what he said don’t let that Hue
bris that I I’m I made all this money
because I’m so smart as you have some of
these big wins maybe you had a big win
in lithium or uranium over the last year
or two or maybe you’re going to have one
in gold and silver if it keeps running
over the next year or two don’t let it
go to your head you’re not as smart as
you think you are and you got to protect
the cash that you made Chris any final
thoughts no bill just thanks for doing
what you do I mean you you provide a
service to small investors and I listen
to you all the time so thanks very much
thank you Chris
[Music]

Private Investor Chris Moore turned $50k into $1,000,000 via a high-risk small-cap stock only to subsequently lose most of that gain in failed speculations.

In this MSE episode, gain wisdom from his story and head his warnings as he described what happened, his key learnings and how he approaches small-cap stocks now with more discernment and caution.

Chris is an avid MSE podcast listener and was invited onto the show after Bill Powers learned his story and the many teachable lessons contained therein.

Sign up for our free newsletter and receive interview transcripts, stock profiles and investment ideas: http://eepurl.com/cHxJ39

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