Buffett Buys Brazil
Global markets were hit hard in the January sell-off. (You remember, the one with the rogue trader scare and the biggest intraday Fed cut in history?)
The major U.S. indexes have struggled to gain traction since then. But other markets, like Brazil, have bounced right back.
Thanks to its agriculture and commodity strength, Brazil is emerging as a 21st-century powerhouse. From soybeans to biofuels to metals — and perhaps even oil and gas — Brazil has what the world needs.
Brazil also has another strong endorsement. Last year, Warren Buffett hinted at a “mystery currency.” Berkshire had just one long currency trade, Buffett said. But he wouldn’t reveal which one.
Most of the guesses turned out to be wrong… It was the Brazilian real. Buffett recently revealed the trade, and his bullishness on Brazil, in his annual shareholder letter.
But Brazil isn’t the only strong emerging market out there. Turmoil or no turmoil, there are many great opportunities abroad.
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