When the wind blows even a turkey can fly
When the wind blows even a turkey can fly
- Suggests that when an industry is popular and has a tailwind (or rising prices), even very poor companies can appear to be doing well.
- Once the tides turn and the industry enters a bear market, most of these poor performing companies (turkeys) don't survive
- This is very applicable to the natural resource space where rising prices can be a huge tailwind for all companies involved
- There were about 5 junior uranium mining companies in the 1990s (bear market)
- By the end of the next bull market, there were closer to 500
- By the next bear market, there were only about 20-25 companies remaining