17 Comments

I think the lack of access to Sao Paolo-listed stocks makes buying index ETF very attractive alternative so that you get exposure to them too. This is especially true if you already are looking to invest in PBR and Vale as they both make up over 10% of the index.

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I have a full Brazil ADR list here but many are on the OTC where they tend to get delisted for low volume: https://www.emergingmarketskeptic.com/emerging-market-adrs/latin-america-adrs/south-america-adrs/investing-in-brazil-adrs-brazilian-stocks/

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Jul 26, 2023
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What do you think about Mercado Libre? (Brazilian Amazon, with operations in most of LatAm.)

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Similarly, the Franklin ETF for Brazil, FLBR, %0.19 expense fee, does not track BOVESPA.

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Ahah, FLBR follows the "FTSE Brazil Capped Index".

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Look at SLC Agricola its a fantastic Agricultural Resource company.

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Any views on Nubank?

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I will include a link to this post in my Monday link collection post: "Emerging Market Links + The Week Ahead (August 31, 2023)" There are other interesting Brazilian stocks that funds talk about albeit they don't trade on US exchanges: https://emergingmarketskeptic.substack.com/s/em-fund-stock-picks

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Weird, I was unsubbed to your substack. Substack is being weird lately.

Anyway, Brazil small cap index might also be worth looking into. I think ticker is EWZS. Thinking of selling my PAGS shares and just buying a basket as well.

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Thoughts on B3? Nice moat & competitive positioning. Should benefit from additional trading volume/market activity. Lots of room for growth with such a low % of the country’s population participating in the stock market currently. Company directly benefits from an improving economy and market involvement.

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Excellent post!

I would take a look to Steelmakers as well. Super cheap (SID, GGB, USNZY).

And Bradesco BBD!

Cheers!

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Hey Guy, thanks for the article – I'd love to discuss this further if you're interested. Couldn't find a way to message you directly here, but can you add me on twitter @joaohlisboa ? For context, I'm a Brazilian public equities investor covering both local and global stocks. Best, Joao

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Let's talk on WhatsApp

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Despegar is a travel agent in several Latin American countries.

Only 1/3 of their gross bookings were from Brazil as per the most recent 20F filing:

See page/67 here:

https://d18rn0p25nwr6d.cloudfront.net/CIK-0001703141/1886eda3-3e07-4f51-9290-b9ccd172e26e.pdf

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Jul 26, 2023
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Would you know how much of Despegar's revenue accrues to Expedia, who is their largest shareholder that also handles all thier larger ticket bookings?

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