TGR: For the more conservative investor, are there any larger-cap companies you like?
DM: There are two that I want to talk about. Franco-Nevada Corp. (FNV:TSX; FNV:NYSE) is pretty conservative. It has compounded about 20% a year. It's run by some of the smartest people in the business and the company has a ton of cash. Franco-Nevada knows how to inject cash into certain projects so it gets a royalty stream and upside on top of the royalty stream. It's now listed on the New York Stock Exchange.
The other one that's been in the doldrums fairly recently and is coming out of them is Silver Wheaton. This company really knows what it is doing. It is buying streams of silver from companies all over the world. The contracts are fair to both sides in most cases. It's really hard to be a company that knows ahead of time what the costs are for the silver going in, what Silver Wheaton pays and what the cash flow is coming out, based on the current silver price. So, you can actually do your own modeling. Investors are buying silver in the ground pretty cheap with Silver Wheaton. I like that model a great deal. I think it has a lot of merit to the upside.