ValueLine: Rio Tinto
Rio Tinto’s fortunes are so closely tied to China that any ‘speed bumps’ in Chinese demand would hit the company hard. Read online.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Mark
:
Hi Roger,
As a shareholder in Rio that makes up 1/3 of my portfolio it was interesting to read this article. For some time now even before i read this i article i have been contemplating about reducing the number of RIO shares i own or selling the entire lot. Over the years i have not been impressed by RIO’s management or the level of debt the company has held on its balance sheet. I bought the shares for $57 a share and i was wondering do you have any guidelines to help investors know when to sell shares. Obviously for shares that are doing well it would be when their price is above their intrinsic value. I know you have clear guidelines when buying shares can share any guidliness or rules that you apply when selling shares. I saw in one of your other post that you values RIO at $42.01 so at todays price it is well above value.
Regards
Mark
admin
:
Hi Mark,
Many other investors have asked me the exact same question over the past months. In response I have included an additional chapter in my book that outlines my criteria for selling a holding. To be fair to everyone, I ask that you wait for the book’s release for my answer.
Thank you in advance for your patience,
Roger