You can’t be Warren Buffett in Brazil – management needs to be more flexible

Paolo Di Sora, fundador da RPS Capital
For the manager, it is necessary to monitor not only the companies but also whatever is happening in the macroeconomic scenario which is unstable in the country. Image: RPS Capital/Disclosure.

Buy and hold shares of good companies for many years, this is the principle of investment Warren Buffett One of the richest men on the planet. But the Berkshire Hathaway CEO has an advantage: He invests in large part in companies in the world’s largest economy, which rarely sees its macro landscape passing through great volatility. This, as we are well aware, is not the case in Brazil. Therefore, paolo di sora, founder of RPS Capital, it is clear stating: “You can’t be Warren Buffett in Brazil.”

invest in shares America This has considerable advantages, starting with the fact that the US economy is one of the most vibrant in the world, with a lot of Forecast. For Di Sora, it’s a place where you can focus on micro-evaluations and do long-term investment research, as Buffett does.

His life is so easy. Most of Buffett’s investments — I followed a lot of his trajectory because I’m curious and an expert on the subject — were in the United States. Most macroeconomically stable economy in the world”, highlights the manager

throughout emerging markets such as Brazil and Latin America,”near you Periodic macroeconomic disruption which significantly affects the economy, sectors and companies”, explains Di Sora. Just think of persistent domestic crisis Not counting the effects we regularly go through, changes in exchange and interest have on different sectors of our economy.

“We not only need to monitor companies, but we need to build investment thesis in line with what is happening in the economy and what is happening from macro to micro.” – Paolo Di Sora, founder of RPS Capital.

Brazilian managers must be resilient to deal with macroeconomic changes

As we are in a very different context from Buffett, Di Sora says that managers cannot stick to their investment principles and need to keep Liquid and flexible portfolio, which suits Surprising macroeconomic scenario. “You have to be humble to understand that the landscape is changing and we have to change our portfolio”, he remarked.

From portfolio transformation and wealth management, Paolo di Sora can talk about assets. In 2013, he founded RPS Capital, which is deposited today BRL 3 billion in assets under management (AUM). General Strong DNA in the works, the manager also deals in interest, currency and commodities. The largest hedge fund in the house, called Total Return, has accumulated a 225% return since inception.

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Established almost as a “family office”, RPS now seeks to position itself in the segment of retail investor Which, according to Di Sora, are becoming more and more mature. Currently, they represent 8% of the RPS.

Paolo Di Sora was a guest on Radiocash, a podcast specializing in the financial markets. Listen to the full episode below or read on for the highlights:

The weather is not good for emerging markets

Although the celiac rate is increasing in Brazil at each COCOM meeting, the world landscape (United States included) is still low interest, in the assessment of Di Sora. The discussion about interest rates isn’t over yet, but according to an RPS manager, “no one will start investing in fixed income in the next 12 months because the Fed has risen to 50. base point in interest or whatever the number is”. So your recommendation for international investing is clear: buy stocks.

Regarding inflation in the post-pandemic recovery, the manager noted that central banks around the world are already becoming more circumspect. For him, interest will rise, but not at a very thunderous level.

In this context, two factors influence emerging markets, such as Brazil: a Fed stimulus returns It is on Chinese growth slowdown. “In emerging markets, the inflationary monetary situation is worse,” comments Di Sora. For this reason, he says he prefers to invest in Uncle Sam’s land.

Where does RPS Capital invest?

Speaking in more depth about his investments and RPS bets, Paolo di Sora commented Optimistic about commodity basket, with companies such as Petrobras (PETR4), Vale (VALE3) and Usiminas (USIM5) at their lowest point of valuation.

In Brazil, the founders of RPS do not like the real estate sector in general, which favors times of low interest rates. but they claim that low-income civil construction sector, which is subsidized by the government through such programs green and yellow house, is a positive inequality. At RadioCash, he cites companies like Directional (DIRR3), Tent (TEND3) and MRV (MRVE3).

In China, the manager is confident about the technology: “AndI feel Chinese technology sector It will be very vibrant in the next ten years, fifteen years”, he says.

Would you like to hear the full conversation with the founder of RPS Capital? Listen in the player below or search for RadioCash on your favorite podcast platform:

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About the author: Sarah Gracie

Sarahis a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.

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