Value investing is often described as running towards the fire or seeking out disaster. Often, outstanding returns can be had as the market reverts from total capitulation, to merely bad. In the case of Brazil today, an investor is paying capitulation pricing for prospects that are already better than merely bad.
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.
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
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.
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.
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
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.
What do you think about Mercado Libre? (Brazilian Amazon, with operations in most of LatAm.)
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
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.
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.
Excellent post!
I would take a look to Steelmakers as well. Super cheap (SID, GGB, USNZY).
And Bradesco BBD!
Cheers!
Look at SLC Agricola its a fantastic Agricultural Resource company.
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
Any views on Nubank?
Joāo, I'll add you!
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