MoneyTalk

 

The Best Brazilian Shares To Buy

25 July 2011
In this week’s episode:

David Kuo chats with Marina Akopian of Hexam Capital about investing prospects in Brazil. They take a top-down and bottom-up look at the biggest economy in South America to unearth some investing gems. They also examine how the promise of Marxist leader Dilma Rouseff to eradicate poverty could provide private investors with some golden prospects.

 

A transcript of this podcast is also available.

Marina Akopian and David Kuo
Marina Akopian and David Kuo

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Comments

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guss123 26 Jul 2011 , 4:10pm

I am a Brazilian and long time investor in the country
and one information was missed in the podcast, though the Bovespa returned was about 400% in the last decade, the fix income was still a better option during the same time.
With the highest interest rates in the world you can still find government bonds that pay inflation plus 6,5%-2024 and 6,0%-2035.
One thing to be said is that a value approach has worked very
well some studies of value applied to the Brazilian market had a return of 6300% since1993 in this case beating the fix income with a good margin.
Brazil has been a great place to invest with companies that would easily qualify for the dividend achievers like;
Bradesco, Itau, Gerdau, Natura, Ambev, Saraiva, Tractebel, Souza Cruz.
I would not ruled out the state ones specially Petrobras with present valuations; P/E 8 P/BV 1 and dividend yield of 4,4%.
That said the most important thing to invest in Brazil is a good stomach all this companies were sold very cheap during the 2008/2009 crises, but with fix income on present levels and with
very high historical returns on capital invested Brazil has been a
paradise for investor for a long time. And the future do not seems to
be less bright for the samba and football country.

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MoneyTalk is a podcast from The Motley Fool (UK). Hosted by David Kuo, it’s a lively roundtable discussion where Fool writers and guests from the world of money thrash out the financial issues of the day.

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David Kuo is The Motley Fool’s media personality. He can be heard on BBC London’s (94.9FM) Breakfast Show where he arouses listeners every weekday morning with his unique brand of financial news. He is also a regular commentator on national news programmes including CNBC, BBC News, and Sky News.

David stumbled into the world of broadcasting at the turn of the Millennium when he was invited to comment on the stock market crash. He says, “I think I stunned Londoners speechless when I said the good thing about the crash is that shares are now more affordable for people who want to invest in the stock market!”

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