HISTORY OF BHP BILLTON
📊 BHP Billiton is an Australian-owned group which originated in that country and Indonesia in the 1800s as the result of a merger between Broken Hill Proprietary (BHP) and Billiton, two distinctly successful mining companies. BHP originated in the inland Australian mining city of Broken Hill, specialising in the discovery, development and marketing of iron ore, copper, oil and gas, diamonds, silver, and zinc, amongst others.
📊 Billiton originated on the Indonesian island of Billiton (Belitung), and became a forerunner in the global market for metals and minerals, cementing itself as a major producer of aluminium, chrome, steaming coal and nickel.
📊 Both enterprises enjoyed a distinct and unique history in the region: BHP produced the Wirraway fighter plane for the Commonwealth Aircraft Corporation in 1939, and launched its first line of ships for the Australian navy in 1941. Royal/Dutch shell purchased Billiton in 1970, and it went on to become a mining empire that extended from Australia to South America. The company was also at the forefront of sustainable mining practices, establishing the precedent for all major mining operations globally.
📊 In 1994 a major portion of Billiton was acquired by South African mining company Gencor, and after a prosperous joint acquisition Billiton divested from Gencor in 1997 and was first listed on the London Stock Exchange.
📊 As the two major regional players, BHP and Billiton agreed to merge in 2001, and while the group continued a strong focus on mining in Australia, it also secured an extensive portfolio that includes Chili, the Gulf of Mexico, and Canada (where it announced the discovery of the most significant gem quality diamond at EKATI Diamond Mine in 2011).
📊 Today the company has headquarters in London and Melbourne, and while it is listed primarily on the London and Australian stock exchanges, it has a secondary listing on the Johannesburg Stock Exchange (JSE), providing domestic investors with the opportunity to buy shares in a global mining firm – one of the largest listed on the JSE, with a market capitalisation of over R600 billion.
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BHP BILLTON PERFORMANCE
- BHP Billiton outlined a strong growth strategy to counter the negative financial data reflected in the live online stocks chart as a result of instability in commodity prices and the US oil sector. This strategy is set to boost market value due to the group’s established and extensive portfolio, with coal, copper, iron ore, and petroleum exploration extending across the Americas, Asia, Africa and America, as well as financial gains due to sound financial planning. The company has mining operations in 25 mineral rich countries, mining gold, titanium, ferroalloys and nickel.
- The group reported gains of US$3.6 billion dollars in 2017 while it continued to explore capital investments and expanded its exploration activity. Added to this, the group examined the opportunity to buy into their major assets, further boosting value significantly. This disciplined financial strategy coupled with strong returns on bolstered productivity have meant a positive forecast for the company’s share value going forward, benefitting also from its global reach and successful marketing strategy.
- Marketing has long been integral to the company’s success, particularly due to their global operations, which sees iron ore mined in Austrialia sold to Chinese steel companies, copper cathode from Chile supplied to Japanese factories, or oil from the Gulf of Mexica fuelling US transport.
BHP BILLTON INVESTOR TIPS
- BHP Billiton currently trades on the Johannesburg stock exchange under the stock symbol -BHP. Due to the recent drop in share prices, investors now have the opportunity to buy shares at a low price in time for strong growth going forward and good dividend yields.
- As commodity prices begin to improve, shareholders can enjoy a significant return on share prices, making BHP a sound mid- to long-term investment in 2019.
- The group also provides high-return growth opportunities due to its extensive portfolio and its history of successful capital management as it continues to prioritise businesses that generate the most income with high potential for future productivity gains.
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Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy BHP BILLTON Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN BHP BILLTON STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE BHP BILLTON STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of BHP BILLTON stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy BHP BILLTON stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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