Warren Buffett once said “whether we’re talking about socks or stocks, I like buying quality merchandise when it’s marked down“. I feel the same way about my Stocks and Shares ISA.
Anglo American (AAL.L) saw its stock fall by 4.5% this week. And that’s got me thinking about it as a potential investment.
Renewable energy
Like a lot of mining companies, Anglo American is attempting to shift its focus to commodities that will be useful in the transition to renewable energy. In this case, that means iron ore and copper.
In order to get to this point, the firm is looking to divest its diamond, coal, and platinum operations. This won’t be straightforward, but the business seems to be making good progress.
I like the look of Anglo American’s copper assets very much. According to data from Wood Mackenzie, the company has lower production costs than BHP (BHP.L), Glencore (GLEN.L), or Antofagasta (ANTO.L).
Since commodities businesses…
