Because Australian mining company BHP Billiton has a finger in everything from copper to uranium, with this one pick you can give your portfolio exposure to most industrial commodities and to a natural-resource economy that’s likely to make the Australian dollar one of the world’s best currencies over the next decade or more.
Buy BHP Billiton (BHP)
Jim, I have a question on this pick.
This is a dual listed company with shares in both Australia and the UK. There are ADRs for both – BHP and BBL. As of April 2010, BHP has been trading at about a 20% premium to BBL. As far as I can tell, BHP and BBL have the same ownership rights and the same dividend stream, and the only significant different is that the BHP ADRs have a larger daily trading volume. A large institution might care about the higher liquidity of BHP, but that shouldn’t be much of a factor for an individual. So my question is, why not buy BBL instead of BHP?
Dear Jim,
Are you still confident in BHP with Jack Nassar so involved in the company?