Sep 3, 2026 · 54 min · 10 segments
In this episode, Arlen sits down with legendary resource investor Rick Rule for a deep dive into what it actually takes to make money in the mining and natural resource markets. Rather than trying to…
Rick RuleGuest
Arlen HansenHost
Um, but what's, what's the first rule that you think an investor needs to remember when a mining market starts making them think they're smarter than they actually are.

at least money that's made deliberately uh money is made by understanding the delta between price and value or price and expected value what happens is that investors who learn their craft and start out in a bear market uh are fortunate enough whether deliberately or not to be buying dollar bills for 50 cents what happens to people unfortunately is that when the company that you bought for 50 cents knowing it was worth a dollar goes to three dollars sometimes its real worth hasn't budged at all uh rather than being three times as attractive it's three times as risky uh people can differentiate that in a very general sense not perfectly but they can differentiate that if they continue with the notion that money is made the delta between price and value people pay slave assistance into price because price is what they think they spend and also uh because that's information that could be obtained with very little work people also prefer to feel rather than think uh and uh narrative based investing which is to say bull market investing uh allows you to believe that your feelings are more important than doing the work to ascertain the value and that's where folks get massacred they just absolutely get massacred

yeah so like if stock falls by 50 everyone's going oh my god it's cheap that doesn't really mean it's cheap at all that's correct

yeah So you actually typed on price to value and that was kind of my next question, but I have a follow-up question.

But like the follow-up question that I wanted on the first one was like, are you starting to see signs that people think that they're smarter than the bull market out there right now?

I mean, I, I, I hang out a little bit on X because it's where I have the largest community.

And it is amazing just in the last four weeks that, To see how much smarter people feel they are as a consequence of that floating abstraction known as price escalating.

As I think you know, I went through the first part of my career in the decade of the 70s.

And I thought that my performance in the decade of the 70s had to do something with me.

It had to do with the fact that natural gas price went from 15 cents to decontrolled deep gas, $15.

Um, but what's, what's the first rule that you think an investor needs to remember when a mining market starts making them think they're smarter than they actually are.

at least money that's made deliberately uh money is made by understanding the delta between price and value or price and expected value what happens is that investors who learn their craft and start out in a bear market uh are fortunate enough whether deliberately or not to be buying dollar bills for 50 cents what happens to people unfortunately is that when the company that you bought for 50 cents knowing it was worth a dollar goes to three dollars sometimes its real worth hasn't budged at all uh rather than being three times as attractive it's three times as risky uh people can differentiate that in a very general sense not perfectly but they can differentiate that if they continue with the notion that money is made the delta between price and value people pay slave assistance into price because price is what they think they spend and also uh because that's information that could be obtained with very little work people also prefer to feel rather than think uh and uh narrative based investing which is to say bull market investing uh allows you to believe that your feelings are more important than doing the work to ascertain the value and that's where folks get massacred they just absolutely get massacred

yeah so like if stock falls by 50 everyone's going oh my god it's cheap that doesn't really mean it's cheap at all that's correct

yeah So you actually typed on price to value and that was kind of my next question, but I have a follow-up question.

But like the follow-up question that I wanted on the first one was like, are you starting to see signs that people think that they're smarter than the bull market out there right now?

I mean, I, I, I hang out a little bit on X because it's where I have the largest community.

And it is amazing just in the last four weeks that, To see how much smarter people feel they are as a consequence of that floating abstraction known as price escalating.

As I think you know, I went through the first part of my career in the decade of the 70s.

And I thought that my performance in the decade of the 70s had to do something with me.

It had to do with the fact that natural gas price went from 15 cents to decontrolled deep gas, $15.
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