general, page-64

Interesting point. One I've touched on already here. My preference for BHP, RIO, FMG over S32 is no secret in these boards. I ended buying my other cornerstones FMG, BHP and RIO on the pullback 08/11/2023. I just think at this point my capital is better served buying into strength. Post #:70866904 I added to my S32 holding Monday Post #:71129364. I had some cash from selling some US Tech on the back of a portfolio rebalance.

I would say the majority of the market has the same rationale. You buy S32 not as a first preference but for the free "Free Lunch*" it provides. Does not mean S32 is not fundamentally sound - It most certainly is. It becomes a question of what you buy when you are spoilt for choice. Here comes the crux; when it comes to fundamentally sound miners we are spoilt for choice in the ASX. This makes it hard to separate the wheat from the chaff and all we can do is make our best call for the sake of the portfolio long term.

At the end of the day it is horses for courses. BHP, RIO and FMG is salient to me personally. Mainly because they've been in the portfolio the longest. BHP If I count the OZL shares, would have been in the portfolio for couple of decades, in fact I can trace it all the way to the Zinifex days. In saying that I do stand by what I said here previously. If you buy S32 here with a longer term horizon 3+ years then probability is we will enjoy accretion within that investment timeframe. Even sooner if you go by the earning posted above...


Free Lunch* - Harry Markowitz famously said that diversification is the only free lunch in investing.