Hello everyone,

I have looked at the stocks in my portfolio with my new but still incomplete knowledge of fundamental analysis and am of the opinion that some stocks are heavily overvalued.

Perhaps they will fall back to their fundamental value soon or at some point?

Yes, actually this is bound to happen in the long term.

So I'm wondering whether I should sell now and invest the capital in fundamentally favorable stocks or in my ETFs?

I also find it interesting that some stocks were already overvalued when I bought them and some only became overvalued later.

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In my opinion, some of the stocks in my portfolio are overvalued:

(not exhaustive)

Palantir $PLTR (-0,43 %)

Ferrari $RACE (-0,16 %)

Rheinmetall $RHM (+1,09 %)

Agree Realty $ADC (+1,05 %)

visas $V (+2,42 %)

Hermes $RMS (-0,39 %)

Microsoft $MSFT (-0,62 %)

Nu 😅 $NU (-0,84 %)

Asml $ASML (-1,96 %)

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On the other hand, I think they are favorably valued at the moment:

(some are not really cheap, but maybe worth buying)

Amazon $AMZN (-0,68 %)

Abc $GOOGL (+0,65 %)

Sofi $SOFI (-1,35 %)

Lockheed Martin $LMT (+1,09 %)

Berkshire $BRK.B (+1,28 %)

Caterpillar $CAT (+0,83 %)

Occidental Petroleum $OXY (+0 %)

Rio Tinto $RIO (-2,04 %)

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I think I probably wouldn't regret it if I just sold everything and put it in the $HMWO (+0,73 %) and put it in the But I enjoy individual shares and the risk is limited. Still, I would like to know how you read valuations and translate them into action decisions and what you think about my specific situation and would possibly act.

actually almost free of charge

Rio Tinto Group $RIO (-2,04 %)
$RIO (+0 %) has held talks with the Democratic Republic of Congo about the possible development of one of the world's largest hard rock lithium deposits. This was reported by Bloomberg today. It is the latest sign of the mining giant's interest in the battery metal.

Talks with Congolese authorities in recent weeks have centered on Rio Tinto's potential involvement in converting the Roche-Dure resource into a lithium mine.

However, these discussions are still at an early stage and may not lead to a formal agreement, the report said. Development of the Roche-Dure resource could significantly increase the global supply of lithium, a key ingredient in electric vehicle batteries.

This move by Rio Tinto demonstrates the growing interest in lithium as demand for electric vehicles continues to rise. The Roche Dure resource represents a significant opportunity for the mining company to expand its battery metals activities.

The diversified mining company Rio Tinto $RIO (-2,04 %) has officially opened the South Gobi Underground Mass Mining Institute (SGUMMI) at its Oyu Tolgoi copper mine in collaboration with the University of Queensland.

Mongolian President Khurelsukh Ukhnaa visited the institute and emphasized its importance in promoting mining education and workforce development.

SGUMMI aims to close the growing skills gap in the mining industry by offering a comprehensive training program for local and international mining professionals. The declining number of first-year students in mining engineering has led to a shortage of qualified professionals in recent years - a challenge that the new institute is trying to overcome.

"Oyu Tolgoi is a world-class Mongolian mine built by over 20,000 Mongolians. It is an amazing achievement in terms of engineering, technological advancement and safety standards - skills and knowledge that we will continue to develop locally with the establishment of the South Gobi Underground Mass Mining Institute," said Jakob Stausholm, CEO of Rio Tinto.

The inaugural cohort consists of 28 participants from various organizations who will use Oyu Tolgoi as a hands-on training facility. The University of Queensland will manage the institute, develop the curriculum and deliver the training. The curriculum will focus on underground mining, geotechnics and mining engineering and will address industry-specific needs and skills gaps with input from leading mining scientists and experts.

From 2026, the institute will be available for training to local and international mining companies. By the third year, the institute will be accredited by a globally recognized mining university.

Rio Tinto $RIO (-2,04 %) has published its report on taxes and royalties paid in 2024, which details $8.4 billion (2023: $8.5 billion) in taxes and royalties paid worldwide during the year.

In Australia, taxes and royalties totaling $6.3 billion (A$9.5 billion) were paid in 2024, including corporate income tax paid of $3.7 billion (A$5.5 billion). Rio Tinto also made significant tax and royalty payments in Chile ($615 million), Canada ($500 million), Mongolia ($482 million) and the United States ($136 million).

Peter Cunningham, Rio Tinto's Chief Financial Officer, said: "We are committed to operating responsibly wherever we operate and the taxes and royalties we pay to governments play a vital role in supporting the economic health and development of the regions in which we operate.

"Our economic contribution can be significant to national budgets and local development priorities such as job creation and skills training in the countries where we operate. And our voluntary social investments provide further added value to communities, enabling them to invest in their own social and economic development for years to come.

"Our commitment to safe and sustainable access to the world's vital materials underpins everything we do. We strive to act responsibly at every stage of our business and continue to work to find better ways to support the communities in which we operate."

Over the past 10 years, Rio Tinto has paid $77.3 billion in taxes and royalties globally, more than 78% of which was paid in Australia.

"A bit of stagnation - and above all more inflation" is the title of the Bank of America economists' new forecast.

In such a scenario, companies with pricing power are in demand, i.e. those that can pass on rising costs to customers. These are companies that are already making good profits today and not in the too distant future. Their profits will not be greatly affected by higher interest rates. The companies must not be too cyclical; after all, they must also be able to withstand an economic slowdown.

The investment bank Goldman Sachs has compiled a list of 102 stocks that can still hold their own in a stagflation.

Analysts see the greatest price potential in commodity companies such as $MTDR (+0 %)
Matador Resources, $CVE (+1,1 %)
Cenovus Energy, $AA (+0,12 %)
Alcoa and $DVN (+0 %)
Devon Energy. The average price target for these stocks is around 40 percent above the current value. They are followed by tech companies such as $AMZN (-0,68 %)
Amazon, $GOOGL (+0,65 %)
Alphabet, $MSFT (-0,62 %)
Microsoft, $META (+1,45 %)
Meta and $ISRG (+0,71 %)
Intuitive Surgical. The professionals put the potential here at at least 30 percent. This is followed by other commodities and media groups such as $SLB (+0,52 %)
Schlumberger, $COP (+2,16 %)
Conocophillips, $RIO (-2,04 %)
Rio Tinto and $OXY (+0 %)
Occidental Petroleum with a potential of between 25 and 30 percent.

Also $WMT (+3,87 %)
Walmart is also on the list; analysts see a price potential of 27 percent for the retailer. For the conglomerate $DHR (-2,54 %)
Danaher experts expect 25 percent and the railroad company $CNR (-0,07 %)
Canadian National Railway is also at the top of the list.

Source (excerpt): WELT / Graphic: ChatGPT

The mining group Rio Tinto $RIO (-2,04 %)
$RIO (+0 %) is facing calls to reconsider its current dual listing on the London Stock Exchange and the Australian Securities Exchange. This structure is seen by some investors, led by London-based hedge fund Palliser Capital, as a hindrance to shareholder value and capital raising. Palliser Capital is calling for a unification of the listing, preferably in Australia, to increase efficiency.

Palliser Capital is supported by the influential proxy advisors Glass Lewis and Institutional Shareholder Services (ISS), who argue that the dual listing could slow down the share in the long term. Despite these claims, Rio Tinto's management is sticking to its strategy. The Board of Directors has unanimously voted against a review of the listing structure and emphasized that external advisors have assessed the current structure as beneficial to the company and its shareholders.

Rio Tinto argues that the dual listing allows it to take advantage of both markets and reach a wide range of investors. A change would incur immense costs and take the focus away from the long-term growth strategy. However, this stance has had an immediate impact on the share price: in London, Rio Tinto shares temporarily fell by 0.23 percent to 48.96 pounds.

Palliser Capital is disappointed by the decision and has announced that it will continue to exert pressure on the management. A spokesman for the hedge fund criticized Rio Tinto's management for ignoring clear signals from the market. The debate illustrates the growing tensions between shareholders and management, with investors calling for a new direction while Rio Tinto is focusing on stability.

In the long term, it remains uncertain whether Rio Tinto's strategy will be successful or whether it will have to bow to market pressure. The discussion about the future of the company will continue and could escalate again at the next Annual General Meeting. What is certain is that the management's decision will further fuel the debate about the company's value and Rio Tinto's future strategy.

Rio Tinto $RIO (-2,04 %) wants to increase its investments in the USA.

"We have a strong desire to invest more in the US, particularly in copper," said Katie Jackson, head of Rio Tinto's copper business, in an emailed statement today.

The Trump administration has recognized the need to develop domestic sources of copper and other key materials. The US President had previously signed an executive order to streamline the permitting process and increase government funding for mineral projects.

Rio Tinto, the world's second-largest mining company by market capitalization, is the majority owner and operator of the Resolution copper project in Arizona. According to estimates, it could cover up to a quarter of the current demand for the industrial metal in the USA.

Rio Tinto also operates the Kennecott copper operation in Utah. The underground mine there is being expanded, after a conversion of the smelting plant was completed in 2023.

Rio Tinto also mines several other materials in the USA, including lithium, borates and tellurium.

The board of Rio Tinto $RIO (-2,04 %)
$RIO (+0 %) has unanimously recommended that shareholders vote against a resolution proposed by an activist investor calling for an independent review of the company's dual listing.

Palliser Capital, a London-based hedge fund, has called on the Anglo-Australian mining giant to consolidate its corporate structure into a single Australian company, arguing the current dual listing in London and Sydney diminishes value for shareholders.

Ahead of the AGMs scheduled for April 3, 2025 and May 1, 2025, Rio Tinto has issued a statement to all shareholders responding to the resolution tabled by Palliser Capital and other shareholders, as well as the related reports from Glass Lewis and ISS.

Leading international proxy advisory firm Glass Lewis and ISS recommended that Rio Tinto shareholders vote in favor of Palliser's proposal in order to conduct a proper review of the unification of Rio Tinto's dual listed company structure.

In the meantime, Rio Tinto explained that the rationale for unifying the structures of dual listed companies at other companies, such as BHP, is not applicable to its own situation. This is due to several factors, including the location, growth prospects and tax profile of the group's assets, as well as the size of the entity that would need to be absorbed in a potential dual-listed company unification.

In the Notice of Annual General Meeting 2025, Palliser Capital has proposed a resolution calling on Rio Tinto plc to establish a committee of independent directors, including an external shareholder representative. This committee will consider whether the combination of the two listed companies into one Australian-based holding company is in the best interests of shareholders. The resolution also calls for the committee to commission an independent report on this issue and publish a comprehensive report on its findings.

Rio Tinto has rejected Palliser Capital's claims of an alleged $50 billion loss in value due to the structure of the dual listed companies as unfounded and misleading. The company further argued that the combination of the two listed companies would be value destroying for the Group and its shareholders.

Rio Tinto $RIO (-2,04 %)
$RIO (+0 %) invests in Exurban, a UK-based recycling company with plans to build a facility in the US to recover metals from cell phones, computers and other electronic waste (e-waste).

According to an investor newsletter seen by Bloomberg, Rio, along with recycling and circular economy company Giampaolo Group, will take a minority stake of 10-15%. They join other well-known investors such as Mitsubishi Materials and MKS PAMP.

Exurban was founded in 2022 by a group of well-known figures from the metals industry, including the former head of marketing for copper and cobalt at Glencore.

"We share a vision to supply the industry of the future with essential metals by using a new, waste-free recycling technology. I look forward to working together to make this vision a reality," said Stefan Boel, CEO of Exurban, in a statement.

The partnerships will help set new standards in e-waste recycling and related advanced technology projects, said Exurban, which plans to build a $340 million facility in Fort Wayne, Indiana, to recover metals such as copper, gold and silver.

The company had previously aimed to start construction in 2023, but this is now unlikely to happen before 2026, according to the newsletter. In the short term, Exurban plans to complete a feasibility study by the middle of this year.