The stock market volatility in recent months has scared off even seasoned investors like Lirio Parisotto, who is the largest individual investor in Brazil managing R$2.2 billion of his own money. He is known for being a fundamentalist and a “buy-and-hold” guy. Although this blog has great respect and admires Mr. Parisotto, we do not agree with a couple of his stock picks. Some of his picks, for instance, have tanked this year, like CSN and Usiminas. And recommending Vale at this point in time does not seem very reasonable to us. 

Anyway, it is always worth it to listen to him. “For those who have money, this is a good time to buy more,” he says. I’m having the worst year of my history as an investor, but at some point the crisis must end.”

Here are some of his positions:

Metals & Mining: CSN, Usiminas, Vale
He really likes CSN and Usiminas, and he bets on them for the long run. So far in 2011, CSN and Usiminas are down about 40%, but he seems to have used the opportunity to buy more. (good luck on that!)

Banks: Banco do Brasil and Bic Banco
He likes the banking sector and says that Banco do Brasil is attractive due to its lower P/E when compared to Itau Unibanco. Bic Banco is his bet within the small cap stocks.
Acquirers: Cielo, Redecard
Both companies are holding up well in 2011, with Cielo‘s shares up 50and Redecard’s up 47%.
Utilities: CPFL, Celesc, Eletropaulo, Transmissao Paulista
Good dividend stocks.
Construction: Tecnisa
He is betting on a turnaround of Brazil’s construction sector. (after all, there is no real estate bubble)
Materials: Eternit
He’s been bullish on Eternit for several years, and remains a believer.
Consumer goods: Grendene
This fashion retail play is part of the investor’s portfolio due to its “outstanding management team”.

Source: Exame

Share →