RE: Dav6 Aug 2015 12:11
Buying into bhp and or rio does look quite compelling at the moment. Veteran investors like Warren Buffet, Neil Woodford etc always say you should have commodities within your portfolio but how much further will the price of commodities fall? Gold for example is now at a 5 year low. However many analysts, researchers say the bearish cycle is now very close to the bottom. My doubt is the continuing falling demand coming from China. With very little research, but knowing the UK has more pets per population than any other country I very nearly bought into Pets at Home for 185p but decided against it and bought into aue, a gold miner in Liberia, where I did loads of research! Currently down 20% in aue and would have made over 50% in Pets. But I am happy to hold in aue, it is well managed, produces gold at a good low price, could be a takeover target, but does have quite high debt. Rio or bhp would perhaps be a more sensible buy, simply by having more than one commodity, in more than one country and paying out divi's. As we know its the timing of when the bear cycle might come to an end??? GL