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So long, October. You were … interesting.
If your portfolio is anything like mine, you’ve entered November with a lower value at the bottom of your brokerage statement than it was a few short weeks ago. So it goes.
Uncertainty around massive AI-related spending that is forecast for the years ahead continues to drive the narrative. And it’s always amazing how sentiment shifts around these central themes. What had been unbridled optimism is now being served with a dose of skepticism, even though the underlying narrative itself has remained rather static.
As always, there are multiple ways to handle these situations as an investor, one of which is to ignore the situation altogether.
Diversification is something we encourage here at The Motley Fool Canada, in large part because it helps temper our emotions through these inevitable market situations. If you’re coming out of October feeling overexposed to AI, this month’s collection of Best Buys Now is here to help.
Foolishly yours,
Iain Butler
Chief investment advisor, The Motley Fool Canada
Best Buys Now #1
Altius Minerals (TSX: ALS)
Despite their prevalence in the Canadian market, we at Stock Advisor Canada don’t offer much in terms of resource company recommendations. However, for Altius Minerals (TSX: ALS), we’re very happy to have made an exception. Since we started following the stock in February 2017, it’s booked a return just north of 400% (about doubling the Canadian market overall). We think there’s plenty more where that came from for this company.
The trick here, and what drew us to the company, is that while we don’t feel we offer an edge when it comes to resource investing, the team at Altius does. In other words, by investing in Altius, you’re essentially hiring an external team of experts who are highly capable of providing the resource exposure you might crave.
While the company has evolved over the years, the core of the business remains as it was back in 2017. Altius has deliberately built a royalty portfolio that spans base metals (copper, nickel, zinc), potash, iron ore, lithium, and renewable electricity, giving it exposure to the critical-minerals supercycle, the energy transition, and traditional industrial commodities simultaneously through a tax-efficient royalty vehicle.
The thesis for investing in Altius is built on an insight that few royalty companies have acted on: The energy transition requires an expanded range of critical minerals and energy infrastructure. Copper is the essential metal of electrification — every electric vehicle, every wind turbine, every data centre requires substantially more copper than the fossil-fuel infrastructure it replaces. Potash feeds the world’s growing population. Lithium powers the batteries that store renewable energy. And renewable electricity itself, generated from wind and solar, needs royalty financing just as mining projects do. Altius holds royalties across all four of these themes, from a low-cost platform with no operating or capital expenditure obligations.
If you’re seeking diversified, low-overhead exposure to the critical-minerals and clean-energy transition through a founder-led, capital-efficient royalty model, Altius offers one of the most compelling long-term compounding vehicles available on the Canadian market.
