Top Stocks to Buy in Brazil

There are 6 top stocks to buy in Brazil that all investors should take a serious look at. Brazil is a real powerhouse in the commodity space and becoming a top economic player in the world. It is a country that continues to grow and expand and has become quite self-sufficient. It is a natural place to look at when allocating new investment money.

In the 1970s, Brazil was a major growth engine and expanded at a rate of almost 10% a year. Their exports were exploding and it made a lot of investors very wealthy. Well, investing in Brazil now could also be profitable if you know which stocks to buy.

Brazil has seen a whole series of economic reforms over the past few years. Among other things. they vastly simplified rules for incorporation, lowered taxes, and doubled the supply of credit.

BRAZIL IS A GROWTH COUNTRY

New projects approved by the national development bank have surged 30 to 50% in the last 3 or so years. Ford and GM have committed billions to launch new auto models in Brazil. And most significant of all, investments in Brazilian projects even recently exceeded over 25% of their GDP. They are almost on a par with the powerhouse growth machines of China and India, and they are arguably more stable as a country.

Brazil is also a huge producer of the ever more valuable agricultural commodities: coffee, sugar, soybeans, and more recently ethanol. They have really become the world leader in ethanol production and use and have significantly decreased their own dependence on oil and gas because of it. In fact, oil and gas stocks and commodity related stocks are certainly a good place to look for the best stocks to buy right now.

Keep in mind, Brazil was hit hard just like very other country when the recession hit. However, they are slowly climbing back to their previous top form and strong investment and growth are definitely returning. The PE ratio for many of their best companies continue to be reasonable and they are very rich in resources. We all know that the countries with the natural resources will thrive well into the future. In fact, Brazil may be the overall king country of resources if you include their forests as the most desirable in the world.

Of course, it was almost impossible for individual American investors to buy shares in Brazilian companies 30 years ago. But, today, it’s as easy as buying U.S. stocks. Each of these stocks can be purchased as American Depository Receipts (ADRs) in the U.S stock markets.

THE TOP STOCKS TO BUY FOR INVESTORS

The following 6 companies are a vitamin b komplex  diversified list of Brazil’s top stocks to buy:

1) ABV (Ambev – Beverage Company)

2) BBD (Banco Bradesco – Financial Bank and Institution)

3) BRFS (Brazil Foods – Large supplier of Meat, Dairy and Processed Foods)

4) CBD (Companhia Brasiliera – Large Retailer like Walmart)

5) VALE (Vale Do Rio Doce – Steel and Iron Ore Supplier)

6) PBR (Petrobras – Huge Integrated Oil Co)

The other way to take advantage of Brazil’s growth in the next few years and this new decade is to buy EWZ (Brazil Market ETF) or BRF (Brazil Small Cap ETF). The bottom line is that an investor should do very well by investing in Brazil both now and in the future. Keep looking for more of our posts on some good stocks to buy in Brazil and in other countries.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *