In 2005, when I constructed the Big-Build Out (BBO) portfolio I imagined that there would be turn-over due to mergers and acquisitions. However, never in my wildest dreams did I envision the world’s largest mining company, BHP Billiton, as a target. Acquirer yes. Target no way! That just demonstrates how much money is sloshing around looking for a home.
If you are not familiar with theory behind the BBO take look at its backgrounder. The portfolio is up over 25% year to date.
Here is the current BBO roster:
- Alcan (AL)
- BHP Billiton (BHP)
- Bucyrus International (BUCY)
- Caterpillar (CAT)
- Chicago Bridge and Iron Company (CBI) *
- Companhia Vale Do Rio Doce (RIO)
- Freeport-McMoran (FCX)
- Lundin Mining (LMC)
- Southern Copper (PCU)
- Rio Tinto (RTP)
- Teck Cominco (TCK)
- Terex Corp (TEX).
* Chicago Bridge and Iron Company replaced Phelps-Dodge on March 30th upon completion of FCX / PD merger; discussed here.