Andile Buthelezi from Sentio Capital chose Anglo American as his stock pick of the day.

Today I'm going with Anglo-American — it's a diversified mining company exposed to PGMs, iron ore, copper and diamond. Diamond is a concern right now, the diamond business is not doing too well, but the beauty of having a diversified portfolio means that there are other levers that they can pull on in other regions that can help the group as a whole continue to grow.

“I like the numbers that these guys are producing: they are generating high ebitda margins, generating high returns (the capital ratios), they are generating a lot of cash which they have committed to returning to shareholders.”

Buthelezi continued: “They've got a very clear different policy and they also recently, at the last results, announced a share buyback so, all good news — I think, yes, concerns about global growth do affect them, but I think the share price has fallen quite a bit to justify having a look at it again.”

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