Minding the minefields

Investing in resource stocks brings plenty of pitfalls. Gaurav Sodhi examines two often-overlooked hazards.

Deciding to invest in a commodities business all but guarantees you’ll encounter plenty of ways to lose money.

Many of the pitfalls are obvious; profits swing wildly, competition is fierce and cyclicality chronic. Even after avoiding these traps, there are other two other dastardly ways to come undone.

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