I am saddned by what is happening with Russia & Ukraine and I spent a good portion of the weekend thinking about the broader implications of the major trade sanctions the West has levied on Russia.
Originally I thought about investing in wheat producing companies, but the valuations and math simply did not add up. This morning I came across commodity producers; one in particular that I think is fairly price and has tremendous upside potential is Rio Tinto.
I wanted to see what others think.
The company has annual revenues of about $50b; and a market cap shy of $100b; it is currently paying a dividend of about 10%. My original plan was to do an options play, but the dividend is so large; I am conteplating taking a safer approach and starting out with $100k in shares instead.
For the past two years I've held on to Oil stocks and they have and continue to be fantastic; in addition to that I've added Haliburton four months ago which has seen one of the best runs short term. (My oil play is Occidental).
Before I pull the trigger on Rio, I am curious to hear what others are pursuing with all the uncertainty; I am glad I am not in tech stocks (well, a portion of my retirement fund was but I have little control over that) but my general play fund has done much better.
Look forward to your feedback & thoughts.
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