facebookCommodities: What are your thoughts about holding NANR for the long term? Was thinking 5% of portfolio. - Seedly


Edited 07 Jun 2022


General Investing

Commodities: What are your thoughts about holding NANR for the long term? Was thinking 5% of portfolio.

Follow up question: Are commodities producing companies less risky/volatile than direct commodities? Was comparing NANR & DBC.

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Edited 07 Jun 2022

Development & Acquisitions Manager at Real Estate Private Equity

I would say that there are pros and cons of holding commodity-producing companies v.s. direct commodities:



  • Good decisions - if management of these companies can find ways to improve the process / business (make it more efficient or cost-effective) to produce these commodities, share prices might move higher than direct commodities.


  • Bad decisions / scandals - If you recall the BP incident where they spilled oil back in 2010, it's share price dropped by 50+% during the 3 months. I doubt the direct oil price fell by that much.
  • You also have so many other costs like labour etc. which once rise, would negatively impact the stock price too.

So from the above points, you can clearly see the management of the company is an important factor in either propelling the share price higher than the price of commodities or it could act against it, notwithstanding the commodity-trading price itself.


Direct commodity - Macro effect

Commodity producing company - Macro & Micro effect

View 1 replies
  • In my opinon, commodities are use for hedging purpose.
  • Never meant to hold for long term, need t...

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