Hot Brazilian Stocks | Are They Worth the Risk?
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- Опубликовано: 1 окт 2024
- Hot Brazilian stocks have even attracted the interest of Warren Buffett himself. Now before you start aping the Oracle of Omaha you ought to consider just how small his exposure is. The two most popular Brazil stocks - StoneCo STNE stock and Nu Bank or Nu Holdings NU stock - are both involved in financial technology solutions. Each of these companies is overexposed to Brazil while they look to diversify into other LATAM countries. Nu Bank is making some progress, but 93% of their revenues are still coming from Brazil. Investing in disruptive technologies is risky enough, but when you throw in a dependency on a single emerging market, it's a showstopper for us. If you're looking for some hot Brazilian fintech stocks to invest in, these two should bubble to the top.
RESEARCH PIECES USED IN THIS VIDEO:
1. Nubank Stock: A Complicated Growth Story
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2. StoneCo Stock: A Ballsy Bet on Brazilian Businesses
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CHAPTERS:
Intro
BRIC becomes BIC
How big are Brazilian stocks?
The best Brazil ETF - EWZ
LATAM's underbanked populations
Where Nubank's growth comes from
Brazilian interest rates and fintechs
Why we're avoiding STNE
A Brazilian fintech we love
Conclusion
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$STNE
$NU
#fintechs
#Brazil
#Brazilstocks
I am a Brazilian investor, nubank customer and I live here in the USA. For me, the best of my banks and Nubank reminds me a little of Capital One here in America, but better. and I understand your criticism of Brazil's risk. Brazil in terms of banking is not like America, there was a banking oligopoly. which makes banks highly profitable. the average price-to-profit ratio of Brazilian banks is 4. And high dividends
That's great that you have an understanding of Brazil as that's helpful in navigating the risks that aren't so apparent to foreign investors.
I am USA Investor. 5 of my friends all piled into SOFI; Instead I chose NU. They are all down on their investment and I am still accumulating shares. JP Morgan biggest bank in the world since 1871 has 81 million accounts. Nubank since 2013 has 100 million and growing...and questions?? BTW Sofi consistently under performs with 7 million customers..but has a cool stadium
@@lamarcascastilho Which bank stocks in brazil do you recommend?
@@henrikg7661 For medium-term trading, I would go to Bradesco today. There was a fraud in a Brazilian company last year, and Bradesco suffered the biggest part of the default, there was a fall in the balance sheet and the market does not forgive... I believe that in the medium term the company will recover its cash and return to prices, even more so with the possible fall in American interest rates... Now, for the long term, the best bank is Banco do Brasil, just look at the balance sheets. It pays high dividends and dominates the Brazilian agribusiness sector, which is by far the most prominent sector in Brazil. I could spend 2 hours just talking about Banco do Brasil.
@@henrikg7661 For medium-term trading, I would go to Bradesco today. There was a fraud in a Brazilian company last year, and Bradesco suffered the biggest part of the default, there was a fall in the balance sheet and the market does not forgive... I believe that in the medium term the company will recover its cash and return to prices, even more so with the possible fall in American interest rates... Now, for the long term, the best bank is Banco do Brasil, just look at the balance sheets. It pays high dividends and dominates the Brazilian agribusiness sector, which is by far the most prominent sector in Brazil. I could spend 2 hours just talking about Banco do Brasil.
Good vid as always. As I’ve said before you guys have helped spur me on to an more reasonable investment strategy. I’m concentrated in dividend aristocrats now. On to my question …. I do hold a Brazilian stock however it’s a food/bev that I’m familiar with. I also eye some of the Latin American petrol stocks. A few don’t look bad such as PBR/A Petrobras.
We're always happy to hear when investors are guided towards more prudent investment strategies because there are far too many FOMO YOLO types out there promoting the "hero or zero" approach to wealth creation which almost always results in the inability to sleep well at night.
Stay away from Brazilian stocks, it will collapse it is just a matter of time.
And the bulls will say it's going to explode, just a matter of time. ;) Investing in any company with single country exposure is quite risky.
Easy,
$DLO
Sounds about right
Completely missed the point on NU. Terrible analysis.
Thanks for that scathing critique, and for all the shortcomings you took the time to spell out.
@@Nanalyzeit’s tough love, mate. NU growth was super strong through some very tough economic times. You come across as a rational thinker, but pity that you would generalise a company purely based on the countries in which it operates, rather than diving into the biz itself. Pity.
@@MufasaRoyale The video explains the risks of investing in the company. Which do you disagree with?
Mystery Company: My guess is MELI. I watched many of your videos in succession and actually posted this comment on the wrong video earlier today... Lol. Apologies.
Awesome videos. I find your insights and perspectives really interesting and thought provoking. Thank you.
Hey thanks for the kind words man! Glad you posted this because we were all kinds of confused :) The mystery stock in the video was $DLO, but we also covered $MELI here (ruclips.net/video/vB0dZSFl0Gg/видео.html).
Are you part of MSCI? 2:13
I'm ex-MSCI. Spent a decade at the firm in EMEA and Asia. Joe P
Nice, thank you
US is looking riskier than Brazil with all these wars, don't you think?
No, it's not. There's actual science behind looking at how risky various countries are. You're comparing a developed market to an emerging market for one.
@Nanalyze Yes, I understand the risk that comes with an emerging market. However, there is also risk with cicles that come to an end? The US political influence around the world is looking weaker and weaker, I'm just concerned that's all as I do have most of my money invested in US equities..
@@aiwne Agree, but that's an entirely different conversation to have. Let's keep this one focused on Brazil.
Woow
Liked the video didja?
Well analyzed, thanks.
Thank you for the feedback!
Dog was a good touch
We're trying whatever it takes to grow! ;)
Universal music group?
Biggest music group in the world. Does it have a connection to Brazil we're missing?
@@Nanalyze no I just was watching a couple of your videos and noticed you always talk about country diverse revenues. Wondered your thought or if you have made a video on it. I own it
@@trentslayton6300 Oh gotcha! No, we only cover dividend champions and disruptive tech.
Great Job Joe ,
I’m invested in both Nubank & Stoneco . Was lucky I got in near the lows . 1 % of my Portfolio is in each one of these
You're more exposed than Buffett! ;) That's good risk management knowing the percentage of each position vs overall portfolio.
What about Argentina?
We focus on emerging market status or higher. Below is from 2021.
Index provider MSCI said on Thursday it will reclassify the MSCI Argentina Index from Emerging Markets to Standalone Markets status during its November index review.
"The prolonged severity of capital controls with no resolution is not in line with the Market Accessibility criteria of the MSCI Emerging Markets Index," said Craig Feldman, global head of index management research at MSCI.
Last time I was in Argentina there were two channels for the same currency. The legal currency was one 350 pesos per dollar, but then you could buy the same currency on the black market at like 700 pesos per dollar. Called the "blue peso," it just hit a record 1040 pesos per dollar. It's totally nuts that such an arrangement exists. If you travel there, make sure to buy pesos on the black market! Just ask around. Joe P.
The volume of your voice is too low.
Good feedback. Better than being too loud I suppose! ;) I'll take this into account when doing future recordings. Just switched to a new laptop. Would any regular listeners be able to chime in here and confirm please? Thank you! Joe P.
@@Nanalyzeyour voice is lower but nothing the volume control wont fix.
@@stephengalea9447 Cheers for the additional feedback! I'll raise volume next video. Joe P.
It's a little lower than usual but fixable in post. Can't really fix it if it's so loud that it's clipping and distorting. Should be able to normalize it next time when you edit the video.
$PAGS?
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