HOLD IN­TER­NA­TIONAL, SELL SA

Finweek English Edition - - INVESTMENT -

BHP Bil­li­ton* an­nounced the f inal with­drawal from South Africa, say­ing that it would de­merge se­lect as­sets. The net re­sults would be a lo­cal BHP Bil­li­ton and an in­ter­na­tional BHP Bil­li­ton, with the lat­ter having as its only South African as­set coal along with iron ore, cop­per and pe­tro­leum from other ge­ogra­phies. As a share- holder the ques­tion is what will I do with my SA Bil­li­ton shares? In truth, I would likely sell them, for ex­actly the same rea­sons that Bil­li­ton is de­merg­ing in SA. Not only be­cause this is a very tough coun­try to mine in but also be­cause of the main rea­sons why own Bil­li­ton in the f irst place. My logic has been that es­sen­tially I em­ploy a smart board of peo­ple to man­age my com­mod­ity ex­po­sure and I do that via hold­ing Bil­li­ton. If they see fit to fo­cus on four core com­modi­ties (with po­tash as a po­ten­tial fifth com­mod­ity), then I will con­tinue to put my faith in them and fol­low them.

*The writer owns shares in BHP Bil­li­ton.

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