Daily Gains Letter

Agriculture Stocks 2015

A diverse investment portfolio should contain stocks from a number of different sectors.  One of the most diverse sectors is agriculture.  On the surface, agriculture consists of producers who grow crops and raise livestock to sell to processors who in turn, prepare and package the products for sale in grocery stores.

At the same time, the agricultural sector also holds a number of agribusiness companies. While there is no clear definition of what makes an agribusiness, any company that brings in a substantial percentage of its revenue either directly or indirectly from agriculture, could be considered agribusiness.

In which case, the agriculture sector just got a lot larger.  There are a number of companies that manufacture tractors and other implements necessary for running farms.  Some mining companies can also be considered agribusiness.  Potash is an essential ingredient in fertilizer; therefore, certain mining companies cross over to the agribusiness sector.

To find some of the sectors more promising stocks, investors might need to think outside the agricultural field.