1Semana·

My favorites in the basic materials sector ⛰️⛏️

Air Products & Chemicals $APD (+0,85 %)

Rio Tinto (With $RIO (+2,18 %) I am more interested in the attractive valuation, dividend and investments in future areas such as copper/lithium)

In the basic materials sector, stock selection was not easy for me. I had to adjust my usual quality standards somewhat and in some cases also make compromises (see above 🤓). The sector is very cyclical, which makes it more difficult to find companies with consistently stable performance. Many key figures are heavily distorted by fluctuations in commodity prices, economic influences or geopolitical factors. At the same time, however, it also offers interesting opportunities for long-term investors, especially if an anti-cyclical entry is successful 🫣.

Which companies do you see as particularly promising for a long-term investment?

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I am also fascinated by the idea of profiting from gold actively and with dividends. That's why I've been looking at gold stocks and have my eye on Franco-Nevada and Agnico Eagle in particular. Neither of them made it into the selection above, but I wanted to mention them anyway. Even though I am not yet invested, I will definitely continue to monitor both stocks.

$FNV (-0,68 %) Franco Nevada is a royalty company with low operating risk but high gold price leverage.

$AEM (-0,65 %) Agnico Eagle is a classic mining company with a good balance sheet and a decent dividend history.

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5 Comentarios

Yoshika@Yoshika

1Semana

I may have a different approach, but I like how reflective you are in your approach.🩷 $LIN

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Tenbagger2024@Tenbagger2024

1Semana

How do you weight the USA now?

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Kate💎 🙌.@Iwanowitsch

1Semana

@Tenbagger2024 Good question. For me, the USA remains heavily weighted because there are simply a large number of high-quality companies here that operate globally. Many of the best companies generate the majority of their sales outside the US anyway, which provides some diversification. Outside of the US, it's hard to find similar quality companies that offer the same market penetration and stability. However, I am aware of how dominant the US can quickly become in the portfolio. That is why I have also added an ETF on the World ex USA to my ETF portfolio, simply to deliberately create some counterbalance.

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Tenbagger2024@Tenbagger2024

1Semana

@Iwanowitsch
I could imagine that China is now trying to obtain technology from Japan and South Korea. So perhaps not uninteresting. The UK is also continuing to grow, which may also be a possibility. But you already have the 3i Group there. Otherwise Italy, where the banks are also interesting. Lottomatica has also developed well for me, perhaps something for you too. Or in the pharma sector, ypsomed is still interesting. In the Netherlands, ASML or internationale. I also find Sweden very interesting

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Epi@Epi

I myself have a few $FNV. Interestingly, it is the most efficient company of all. They make over USD 1 billion in sales with 10 employees.
There are many good arguments in favor of the share. But they don't have any leverage on gold. The share price is at the level of 2020, while gold is almost 70% higher. Or what do you mean by leverage?

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