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About Brazil
We all know that there is an awful lot
of coffee in Brazil. What is less well known is that there are,
increasingly, an awful lot of other things as well.
The chattering classes within the investment circles are increasing
voicing the acronym CIRB. That the first three stand for the rapidly
emerging markets of China, India and Russia, how did the dark horse
of Brazil enter the frame?
Most importantly we must think about oil supplies. Whilst it is
reported widely that output from the non-Opec trio of Norway,
Britain and Mexico has fallen relentlessly over the past few years,
a group of other countries is gradually breaching the shortfall. And
which country heads the list of increases in oil production measured
in millions of barrels per day? The answer is Brazil.
For the switched on investor with a global interest, an investment
trust rather than picking individual companies seems to be the ideal
answer. That is why I looked at the Black Rock Latin American fund.
Amazingly this fund has increased in value over the past five years
by 650%. Admittedly I came late to the party but even so having
bought in at £5.27, it would cost £6 to buy a share today.
The point about this “Latin America” fund is that it is dominated by
Brazil. In fact 8 of the top 10 holdings are wholly or mainly
Brazilian focused. The sectors covered are:-
• Mining
• Wireless communication
• Energy (oil and others)
• Private sector banking
• Steel production
• Beverages
• Railway operation
So next time you have a coffee, think about that next long-haul
holiday you have so deservedly earned. Yes it could be China or
India or Russia (at a push). For me, I am off to Brazil to check on
my investments. When did you say the Rio festival was? |
