I decided to close my position in the Chinese tech company $BABA (+5,86 %) with a 2x return to enter in a new sector and diversify my portfolio.
I chose to invest in Archer Daniels Midland Company ($ADM (+4,11 %) ), one of the largest companies in the global agricultural sector, specializing in the processing of agricultural commodities and the production of ingredients for food, beverages, and animal feed.
ADMs shares exhibit the typical cyclical behavior of the agricultural sector, heavily influenced by fluctuations in commodity prices and global demand for food and biofuels. After a period of exuberance, during which stock prices reached high peaks due to increased demand and certain conjunctural factors, the price adjusted to a more justified level, reflecting the actual market conditions.
This decline represents a healthy correction and positions ADM as an attractive investment opportunity, given its solid growth history and its ability to innovate and adapt to global trends. Therefore, considering the long-term appreciation potential and the risk/reward profile, investing in ADM can prove to be a strategic decision.
With this investment, the #portfolio becomes more diverse and has a more defensive and less volatile exposure.
