Welcome to the new Energy Central — same great community, now with a smoother experience. To login, use your Energy Central email and reset your password.

Energy Business
Rafael Herzberg
Rafael Herzberg
Expert Member
Top Contributor
 · Posted in Energy Business

Are Brazilian stocks... interesting?

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.