How Rich Investors Buy Insurance

[FONT=Verdana, Geneva, sans-serif][SIZE=2][B]By Matt Badiali, editor, S&A Resource Report [/B][/SIZE][/FONT] Friday, March 12, 2010 In July 2007, I was sitting in the Fairmont Hotel in Vancouver, British Columbia, talking to Rick Rule, founder of Global Resource Investments. Rick is one of the most important resource financiers in the world... and he has an extraordinary eye for value and investment safety. We were talking about portfolio insurance. Specifically, the kind to protect you from the huge "oil risk" I told you about yesterday. Rick was explaining how he had set up his clients to withstand a big spike in oil prices. You see, back in 2000, oil traded for about $25 a barrel. Rick thought that was much too low. Even then, it was obvious oil production in countries like Mexico, Indonesia, and Venezuela was in trouble. Increasing demand from emerging markets looked like it would put a huge dent in surplus production. Rick expected a big run up in...