At Invest For Kids Chicago yesterday, Sam Zell of Equity Group Investments gave a presentation on Brazil as a unique investment opportunity. Notes below…

Zell focused on how globalization has been a part of everyone’s vocabulary and that GDP in emerging markets is closing the gap. The demographics in Japan, Eastern Europe, Russia and Italy are poor. Brazil on the other hand has 25% middle class rising to 2/3rds middle class. The country has 180 million people with growth of 5 to 6%. They’re self-sufficient in food, energy, water and has the scale to grow further.
Brazil also has an educated workforce and “free agent managements.” The country has pent up demand as they’re expanding housing and helping people enter the middle class. $60 billion of foreign capital went into Brazil, a “drop of water.” Consequently, there’s inflation and interest rates are high. People seek high returns with a willingness to pay. Zell says it “feels like the US in the 1950’s.”
Zell concluded that Brazil is full of unique investment opportunities with a focus on service and an aspirational and growing middle class.

Sam Zell has praised Brazil several times in the past – like here and here. But his eyes are now turned to Colombia, which he says it’s the next star of Latin America.

Share →