Billionaires For Rent…..Cheap! – Berkshire Hathaway Inc. (BRK.A), Loews Corporation (L), Sprott Resource Corp. (SCP)

The third billionaire for rent opportunity I have found actually acquires the services of at least two of the most successful resource investors in recent times. Sprott Resource Corp. (TSE:SCP). is run by billionaire natural resource and commodities investor Eric Sprott along with one of the key members of his team, ultra-successful resource investor, Rick Rule. Eric Sprott is often referred to as “The Warren Buffett of Canada” and it is a reputation he has earned in the very difficult world of natural resource investing. Sprott Resource Corp. (TSE:SCP). differs from Berkshire Hathaway Inc. (NYSE:BRK.A) and Loews Corporation (NYSE:L) in three primary ways. First, Sprott trades on the Toronto Stock Exchange and only trades in the U.S. in the over the counter market under the symbol (NASDAQOTC:SCPZF). The volume in the over the counter market is quite thin so this security is best traded on the Toronto Exchange. Secondly, as you might guess from its name, Sprott invests in natural resources and has a substantial stake in a business called One Earth Farms. One Earth is a massive commercial farming project on First Nations Reservation lands in Canada, some of the best farming land in the country. Self-made billionaire investor Jim Rogers has been recently pounding the table for agriculture and farming related businesses as the best opportunities available for future profits.

Sprott is currently trading at a 1.02 price to book value ratio and only 7.6 times cash flow which is just plain dirt cheap. It also sports a monthly dividend that produces an 11.2% yield based on the current price.

So, we have two ultra-successful resource professionals at the helm and an internationally known billionaire investor pounding the table for the industry. For any investors interested in generating a solid current income while also having the possibility of exceptional long-term capital gains, Sprott Resource Corp. (TSE:SCP). might just be the perfect fit for their portfolios.

The article Billionaires For Rent…..Cheap! originally appeared on Fool.com and is written by Ken McGaha.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.