Reese, Grantham, and Resource Stocks

Discussing Jeremy Grantham’s warning on dwindling natural resources, Validea CEO John Reese takes a look at some resources-related stocks that get high marks from his “Guru Strategies” in his latest column for Canada’s Globe and Mail.

“Mr. Grantham was one of the few to warn of both the Internet bubble in the late 1990s and the U.S. credit bubble that burst in 2008. Now, he’s issuing another warning, one more long-term in nature, and it has to do with natural resources,” writes Reese. “In his latest quarterly letter, Mr. Grantham says that unless we change our ways, we’re headed for major shortages of several resources, with the prospect of a complete depletion of potash and phosphates stocks — key in farming — high on the list. Also posing a problem: metals.”

Reese takes a look at three Canadian firms and one U.S. firm that deal with natural resources and get top marks from his strategies, each of which is based on the approach of a different investing great. Among them: Inmet Mining Corp., which gets strong interest from his Benjamin Graham-based model, and Potash Corporation of Saskatchewan, which gets high marks from his Peter Lynch-based model. To see all the picks, click here.