FCX - Rio Tinto: A Commodity King To Diversify All Portfolios

• Rio Tinto offers perfect diversification. The materials sector comprises just 2.8% of the S&P 500 index, while the metals and mining subsector accounts for only 0.3% of the market.
• The company produced $25 billion of cash flow in 2021 compared to $6 billion for Salesforce, which is valued at 1.5x Rio. Technology represents 27% of the US market.
• Rio Tinto is a leader in the iron ore and aluminum industries and offers a top-tier copper growth profile. Copper may become the "new oil" in the energy transition.
• The global energy transition is extraordinarily metals intensive. With demand likely to stress available supply over the coming decade, industrial metals represent one of the largest growth opportunities.
• Rio Tinto offers something for everyone: growth, income (10%+), and diversification. With the shares just above a strong 10-year support base, Rio offers an exceptionally asymmetric risk/reward opportunity.

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