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Are Brazilian stocks... interesting?

image credit: Rafael Herzberg
Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

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  • Mar 17, 2022

Are Brazilian stocks... interesting?

This question is asked from time to time by acquaintances in the United States.

I confess to them that I don't feel good about recommending Brazilian stocks. And, of course, they are curious to know my reasons.

I present two emblematic examples. WEG and BRADESCO.

WEG is a company that has grown strongly for years, presents robust results and is strategically very well placed as a supplier of renewable energy solutions.

BRADESCO is a financial institution that has evolved systemically for decades, its profits are always exceptional and its economic and financial position is excellent.

But these companies operate in a Brazilian scenario. Unpredictable, in which the executive, legislative and judiciary branches  specialize in "generating expectations" but not "delivering results".

WEG and BRADESCO have dropped in value on the Brazilian stock exchange this past year!

The Brazilian stock market is a great environment for speculation, but not for those who like to follow criteria usually employed by careful investors.

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Thank Rafael for the Post!
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Sergio Feitoza Costa's picture
Sergio Feitoza Costa on Apr 11, 2022

Good review Raphael. I would complete by saying that the rules and policies in Brazil change according to the political winds. These winds change every 4 years because each one that comes after is worse than it was before. Brazil is a great place for speculators and gamblers but not good for those looking for long term, low risk investments.  To become a lower risk country we need Education. If a politician appeared, even another liar, promising that would invest 10% of GDP in Education, I would even vote again. However, none of them talks about Education even if only to win votes. Just follow the “promises” in this election year.

Rafael Herzberg's picture
Rafael Herzberg on Apr 13, 2022

Thanks Sergio! It has always been very challenging as you very well point out!

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