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Brazil


meiroy

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I learnt something by listening to this, so thank you.

 

Currency, fraud, politics, etc. make investing in Brazil feel like speculation to me.

 

Some ideas that were discussed in the podcast:

 

- Local companies have huge benefits compared to foreign companies.

- Brazil has the best corporate governance of all emerging markets.

- Buy the best companies (quality and compounders).

- Hedge the currency risk by buying growth, don't buy cheap stocks.

- Current market opportunities: Nu Holdings, Weg, TOTVS, LZRFY, some drug store chain.

- When local investors are pessimistic, when the stocks and currency are cheap, it's a good time to buy

 

I would want a +50% discount from emerging market investments compared to the US.

 

I might now know why Berkshire invested in STNE and NU even with the currency and other risks (growth hedges risk and they bought before the IPO).

 

Maybe it is time to look at STNE, PAGS, XP, etc.? $NU has P/S 50 (if it even matters), so it still feels too early and like speculation.

Edited by formthirteen
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16 minutes ago, Dave86ch said:

Any thoughts on Ambev S.A.?

 

ABEV was discussed in the podcast. I don't remember the exact words, maybe he said "best beer company in the world".

 

I would be speculating if I said the currency is cheap:

 

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I guess there's not enough growth to compensate for the risks. Declining margins...

Edited by formthirteen
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  • 2 years later...

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