Do you think BHP Billiton is a good buy at these levels?

Answer 1

When I was new to stocks, one day I was at my broker's office and said, "Why don't I just shop for stocks that are trading at their low for the year and sell them when they reach their high for the year?" (the 'buy low, sell high' notion). After everyone stopped laughing, my broker said, "Sometimes the low for the year becomes next year's high and sometimes the high for the year becomes next year's low."

A few years before that I worked at a Wal-Mart store and they offered to do a payroll deduction for the company stock, which was selling for something like $5-6 a share. Today, that was a great price, but when you were working for $1.60 an hour back then it was an enormous sacrifice I couldn't afford. Similarly, Apple was once selling for around $5 a share, but look at it now.

The trick is figuring out value. When it comes to minerals and mining, Billiton is an Exxon or Chevron. They have enormous intrinsic value and a consistently profitable process for extracting profits. As the future value of their minerals is not likely to diminish, their mineral reserves will. Still, they do have a knack for finding some really good mineral deposits.

I think, for the long run, it is a really good consideration, but then, as Keynes so well observed, "In the long run we are all dead." Every company faces fluctuations, so if you are trading, be wary, but if you are investing, be confident, which you can do with BHP.

Answer 2

Consider BHP a good buy when China keeps up its appetite and keeps buying from BHP. Rates continues to fall. Bullish on commodities.

Answer 3

I guess!!!