Glencore (LSE:GLEN, Financial) was our second new purchase in the quarter. One of the world’s largest mining firms and commodity traders, Glencore has leading positions in metals, oil, coal, and agricultural commodities marketing, and it distributes these products around the world to a wide array of customer industries. This business offers attractive returns and free cash flow generation and has significant barriers to entry. Glencore is also one of the world’s largest miners of copper, cobalt, zinc and nickel, which leaves it well positioned as economies transition toward a lower carbon footprint. Its coal mining business also provides attractive cash flows, which are reinvested into other areas of the business or returned to shareholders. Glencore is run by a smart, hyper-competitive and value-oriented management team that focuses on improving asset and shareholder returns. We find the company’s current valuation attractive.
From David Herro (Trades, Portfolio)'s Oakmark Global Fund third-quarter 2021 letter.
