Adam Rozencwajg, CFA, joined The Value Perspective Podcast, co-hosted by Juan Torres Rodriguez and Django Davidson from Hosking Partners. Together, they explore G&R’s deep value approach to commodities, investing through the lens of real option value, incorporating probabilistic thinking into their decision-making framework, the impact of promotional demand narratives, and the critical role of commodities in the EV sector.

Key Takeaways from the Interview:

• Diverse Approaches to Commodity Investment: A deep dive into commodity investing, capital cycle analysis, and a deep value approach specific to the commodity sector.
• Commodities Driving the Energy Transition: They focused on key metals like platinum, palladium, and uranium, and their pivotal roles in the global shift toward cleaner energy.
• Applying Probabilistic Thinking to Commodity Cycles: Understanding the “call option” nature of commodities and how probabilistic thinking can uncover overlooked investment opportunities.

These insights emphasize how different investment philosophies shape approaches to commodities, market cycles, and their crucial role in the evolving global economy.

Please click below to watch this informative interview. (Recorded in October 2024).

Want to learn more from Goehring & Rozencwajg?  We invite you to download or revisit our entire Q3 2024 investor research letter, which is available below.   

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