Unearthing cold, hard facts

John Sadowski, 75

Occupation: Prospector and mine manager Portfolio: Cash Our investor

When the cast, crew, and fans of the CBC TV show Adventures in Rainbow Country had a reunion in 2006, John Sadowski happily made the trek to Ontario's Whitefish Falls on the edge of Lake Huron. The series was about the adventures of a young boy growing up in the mining and bush country of Georgian Bay's Northern Shore, and Mr. Sadowski not only played a policeman, but was also the stunt bush pilot. It was a role custom-made for Mr. Sadowski, a long-time prospector who had learnt to fly so he could get out into the field quickly and easily.

How He Invests

Despite the torrent of rumours and tips that come his way, he's a great believer in not investing blindly. "The first reaction of people who hear these things is to jump in," he says. "But if you're chasing stocks, you probably haven't done your homework."

P's and B's

Mr. Sadowski says he focuses on the "Three P's": Proven, probable and possible reserves, and avoids the "Three B's," short for "Bull baffles brains."

"You get some promoters that are a little greedy," he says. How to spot them? "They often exaggerate, and leave it to the public to determine if they really have something or not," he says.

How he assesses management

Mr. Sadowski prefers managers that think out-of-the-box, rather than going by the book. "In many cases, that wasn't the way the earth was formed," he says. "You have to think like Woody Allen. He doesn't follow the pattern or the herd, and does his own thing his own way, and he's very successful." He identifies Eira Thomas, executive chairman of Stornaway Diamond Corp., as "an out-of-the-box thinker."

Best Move

In the early sixties, Texas Gulf Sulphur had a spectacular copper, zinc and silver find near Timmins, Ont. Mr. Sadowski bought stock in the company at under $4 a share, and sold at around $30.

Worst Move

In the mid-70s, Mr. Sadowski picked up 10 claims in a small place called Hemlo, Ont. He raised some money, did some drilling, got some interesting results and then ... well, focused on other deals. In 1979, he sold the claims to John Larch and Don MacKinnon, two prospectors who, unlike most, hadn't given up on the chance of finding gold in the area. The two, joined by famed promoter Murray "The Pez" Pezim, soon came upon what was one of the most important gold discoveries in North America - what is now the Golden Giant gold mine - making tens of millions of dollars apiece. "It was a blow," says Mr. Sadowski, who says some good came out of it. "I had the support of a lot of guys, and they had respect that I was that close."

Advice

"There is so much information out there coming at you through computers, newspapers, TV and various people you know. You have to sit down, ask where did it come from, and who can you call, from a geologist to a ministry of mines. If you're going to make an investment, you have to see if there's any truth to what you hear or if it's just a rumour."

Want to share your strategies?

E-mail tony.martin@sympatico.ca